Spot Ethereum ETFs (exchange-traded fujnds) are ready to hit the market, marking a significant milestone for the cryptocurrency industry following approval by the Securities and Exchange Commission (SEC) on Monday.
Spot Ethereum ETFs Set To Launch On Tuesday
Bloomberg ETF expert Eric Balchunas provided further details following the news, stating that 424(b) forms are now rolling in, signaling the final step to begin trading on Tuesday after a year of anticipation for these new index funds that invest directly in the price of ETH. Blachunas said:
It’s official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow’s 930am launch. Game on. The web pages live as well. Let the marketing wars commence!
As previously reported by Bitcoinist, market experts have made optimistic projections regarding the impact of Ethereum ETFs. Sean Farrell from Fundstrat expects net inflows of over $5 billion within the initial months of trading.
Similarly, JPMorgan strategists, led by Nikolaos Panigirtzoglou, estimate net inflows ranging from $1 billion to $3 billion for Ethereum ETFs portfolios throughout the remainder of the year.
Vetle Lunde, a senior research analyst at K33 Research, predicts significant net inflows of $4 billion within the first five months, potentially leading to a price surge for Ethereum due to increased demand.
10% Of Profits To Support Ethereum Protocol
Asset manager Bitwise also made a notable announcement, stating that 10% of the profits generated by the Bitwise Ethereum ETF (ETHW) will be donated to support the development of the open-source Ethereum protocol. The asset manager said:
We cannot take Ethereum and its core protocol properties for granted. We’re excited for ETHW to support the work of those who tend to the Ethereum protocol—the unsung heroes who work tirelessly every day to improve Ethereum’s security, scalability, and usability. Donations will be made annually for at least the next 10 years. Recipient organizations are subject to change based on annual review.
Despite the spread of the news, ETH did not react to Tuesday’s expected launch of the new Ethereum ETFs in the US as it is currently trading at $3,480, down a slight 1% from Sunday’s price.
Featured image from DALL-E, chart from TradingView.com
from Bitcoinist.com https://ift.tt/OV0RCMu
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