The rush to launch Ethereum spot ETFs has sparked interest in the crypto community.
The crypto investment landscape is undergoing a seismic shift as six entities have rushed to file applications with the US Securities and Exchange Commission (SEC) for Ethereum (ETH) futures-based Exchange-Traded Funds (ETFs).
The Rise of Ethereum ETFs
This whirlwind of activity closely follows the recent wave surrounding Bitcoin spot ETFs, marking a pivotal moment in the convergence of digital assets and traditional finance.
In a tweet, Eric Balchunas, a Senior ETF Specialist at Bloomberg, provided insight into the recent rise in applications to the SEC for Ether futures-based ETFs. His remark sheds light on the dynamic events taking place in the crypto investment ecosystem.
Notably, the Ether spot ETF frenzy which kicked off with the filing from Volatility Shares on July 28, swiftly captivated the attention of market observers. Volatility Shares had already made waves in the crypto world back in June, introducing the first leveraged crypto ETF in the United States, the 2x Bitcoin Strategy ETF (BITX).
This groundbreaking move laid the groundwork for what would become a cascade of ETF filings focused on Ethereum. The momentum continued to build as the calendar turned to August 1, with a remarkable flurry of filings from some prominent players in the investment industry. Bitwise, VanEck, Roundhill, ProShare, and Grayscale all joined the race within a mere 24 hours.
While the prospect of Ether ETFs has garnered significant attention, it’s important to note that the road to approval has historically been challenging. According to an insider familiar with the process, the SEC has yet to greenlight any ETF applications linked to ETH futures contracts.
However, the crypto community’s expectations remain high. If the SEC does not reject the recently submitted Ether ETF proposals, a new era in crypto investment could emerge. The launch of these ETFs, if approved, is set to occur 75 days after the filing date.
Volatility Shares, having taken the initiative by filing on July 28, is positioned to lead the pack, potentially preparing to launch its Ether ETF on October 12. Subsequent launches by other entities would follow suit.
Ethereum Experiences Sideways Price Action
The rush to launch Ethereum spot ETFs has sparked interest in the crypto community. However, despite the growing number of applications, the absence of regulatory approval and the looming possibility of withdrawals have kept ETH prices moving sideways.
At the time of writing, the price of Ethereum is pegged at $1,856, up 1.9% over the past 24 hours per date from CoinMarketCap. The coin managed to recover losses from the previous day, effectively bringing its price back to where it stood on Monday, at the $1,853 mark.
A notable observation is that Ethereum’s current price levels mirror those of mid-June, a period during which the asset dipped below $1,700 before rebounding and surging beyond the $2,000 mark.
Market participants have been closely watching ETH’s price dynamics, with keen anticipation for a potential breakout from its current range. Such a breakout could signal a shift in sentiment and potentially pave the way for a sustained upward trend.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.