The Chicago Board Options Exchange (CBOE) has announced that five spot Ethereum exchange-traded funds (ETFs) will start trading on July 23, pending final regulatory approval. This announcement, made on July 19, follows the United States Securities and Exchange Commission’s (SEC) approval on May 23 for rule changes allowing the listing of these ETFs.
The ETFs set to debut include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. In a bid to capture early market share, these issuers plan to waive or discount fees temporarily. Analysts predict these ETFs could attract billions in net inflows within the first few months.
The impending launch has sparked discussions about a potential Ethereum supply crunch. The Ethereum Exchange Reserve, which tracks the amount of Ether available on cryptocurrency exchanges, is currently at multi-year lows. A recent report by Kaiko noted that Ether’s 1% market depth is low, suggesting that increased demand could lead to higher price volatility. This could cause Ether to outperform Bitcoin in percentage gains.
Institutional analyst Tom Dunleavy predicts that Ethereum ETFs could see inflows of up to $10 billion this year, with monthly capital flows reaching as much as $1 billion. Dunleavy expects these inflows to have a positive impact on Ether’s price, potentially pushing it to new all-time highs by early Q4.
Matt Hougan, Chief Investment Officer of Bitwise, echoed this sentiment. He noted that Ethereum stakers are less inclined to sell their assets compared to Bitcoin holders. With 28% of Ether’s supply already staked and increased withdrawals from exchanges to cold storage, Hougan believes that Ether holders are anticipating future price increases.
As the launch date approaches, the market is poised for significant activity, with investors eagerly awaiting the performance of these new Ethereum ETFs.
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