- The cryptocurrency community anticipates the approval of Ethereum ETFs on Thursday.
- Investors hope for a similar surge to the one that happened after Bitcoin ETFs were introduced.
- Ethereum exchange-traded funds (ETFs) provide fresh difficulties.
If Ethereum ETFs are approved on Thursday, institutional investors are prepared to invest $500 million in them over the course of the next week, according to research by cryptocurrency exchange OKX.
According to Lennix Lai, global chief commercial officer of OKX, it’s likely equally significant as the approval of the Bitcoin ETF, if not more so, DL News said.
The next wave of institutional demand might arise from Ethereum being approved to be traded as a proxy under a conventional framework, according to Lai.
A feverish pitch
With the US Securities and Exchange Commission perhaps reversing its long-standing opposition to approving an Ethereum spot price exchange traded fund this week, anticipation is reaching a fever pitch.
Since Monday, Ethereum has increased by 24%, propelling the proof-of-stake market. Lido Staked Ether, for example, has increased by 27% over the past seven days, as reported by CoinGecko.
A number of applicants, including Franklin Templeton, BlackRock, Fidelity, and Invesco Galaxy, are anxiously anticipating the SEC’s ruling.
Nonetheless, asset manager VanEck is first in line to receive a positive or negative regulatory response.
Although the head of Van Eck’s digital assets research said on Wednesday that the company expects the SEC to respect the waiting list, any approval will probably be given to more applicants in order to prevent the agency from being perceived as the kingmaker.
Investors anticipate that Ethereum ETFs will launch in a manner akin to how Bitcoin funds did in January.
Since January, ten of these goods have traded at more than $1.5 billion in volume.
Historic uprising
Wall Street’s adoption of the asset class and the introduction of Bitcoin ETFs led to a historic surge in the cryptocurrency market. The market value of the industry has surged by 50% to $2.7 trillion this year.
Animal spirits might get even more excited by an Ethereum equivalent. This week, Bernstein analysts projected that if the funding are granted, Ether will rise to $6,600.
According to Lai, Ethereum might soon surpass its all-time high following the approval of a possible ETH ETF.
Retail investors will find it simpler and less expensive to purchase exposure to the second-most valuable cryptocurrency with the help of an Ethereum ETF.
According to Jean-Baptiste Graftieaux, CEO of Bitstamp, an Ethereum ETF will mark a significant milestone for the sector, similar to the Bitcoin ETF that came before it, DL News said.
Exchange fees
However, cryptocurrency exchanges like Coinbase and Kraken might have a fee.
With ETFs, traders can access the asset class without utilizing industry-specific exchanges or digital wallets. Put another way, going mainstream has a lot of consequences.
However, Lai played down the long-term risk for exchanges, claiming that the ETFs will serve as a starting point for those new to cryptocurrency.
According to him, it might even increase the size of the market overall in terms of participants and volume, making it complimentary rather than cannibalistic.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
