- Spot Ethereum ETFs were approved for trading on July 23.
- Despite ETH’s sluggish performance at the time of writing, the bullish momentum remains.
After much anticipation and several rounds of revision, Ethereum was brought to market [ETH] ETF has finally received full and final approval to begin trading in the United States on July 23.
SEC gives green light for Ethereum ETFs
The Securities and Exchange Commission (SEC) has given the green light to ETH ETFs from companies such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy.
This approval follows the SEC’s final approval of their S-1 registration statements on July 22, allowing these ETFs to launch on prominent exchanges including the Nasdaq, the New York Stock Exchange and Chicago Board Options Exchange.
This happened just a day after President Joe Biden announced his withdrawal from the upcoming election.
Will ETH’s response be delayed?
However, this news did not have a major impact on Ether’s price at the time of writing.
At the time of writing, ETH was up just over 1% in the past 24 hours, trading at $3,521. CoinMarketCap. Despite this sluggish performance, investor sentiment remains optimistic.
Encouraging investors to remain a strong crypto analyst RunnerXBT said,
“Honey, don’t leave, ETH ETF inflows will be better than expected.”
Kaiko’s market forecast
However, Crypto Analysis Company Kaiko estimates that the ETH price will rise by no more than 24% by the end of the year due to disappointing demand for spot ETH products.
Source: Kaiko
It is important to note that the Kaiko survey was conducted before President Biden’s decision to withdraw from the election.
Will Cai, head of indices at Kaiko, said the same:
“The launch of the futures-based ETH ETFs in the US late last year was met with disappointing demand. All eyes are on the launch of ETFs with high expectations of rapid asset accumulation. While a full picture of demand may not emerge for several months, the ETH price could be sensitive to the inflow numbers of the first days.”
In addition, Kaiko also analyzed how the adoption of spot ETH ETFs is expected to have a significant impact on the Grayscale Ethereum Trust (ETHE) and its price dynamics.
One notable effect will be the potential outflows from ETHE as investors will shift their money into the newly launched spot ETFs.
Source: Kaiko
Before launch, ETHE shares’ discount to NAV narrowed, indicating they were trading closer to their true value. As ETHE transitions to a spot ETF on July 23, it will become more liquid, prompting many investors to sell.
This shift, along with the narrowing discount, suggests that traders are ready to cash out at full NAV prices, allowing them to make a profit.
In conclusion, AMBCrypto’s technical analysis of ETH, including indicators such as RSI and CMF, indicates that bullish momentum continues to outpace bearish pressure.
Source: TradingView