- The final approval of Ethereum ETF has led to increasing institutional interest.
- The partnership between State Street and Galaxy Digital has expanded ETF options beyond Bitcoin, increasing cryptocurrency adoption.
As we approach the long-awaited approval of spot Ethereum [ETH] Exchange traded funds [ETFs]scheduled for a July 4 launch according to a Reuters According to the report, the market is not reacting favorably.
According to CoinMarketCap data, Bitcoin [BTC]along with all major cryptocurrencies, were showing red candlesticks on their daily charts at the time of writing.
However, price action isn’t the only metric that reflects investor interest.
Increase in institutional interest in Ethereum
Despite the recent price drop, the ETH CME (Chicago Mercantile Exchange) futures Open Interest (OI) is actually rising, mirroring the trend observed in BTC before the start of ETF trading.
Saying the same, a well-known blockchain influencer, Olivier Isaacs took to X (formerly Twitter) and commented:
“Don’t be blinded by slow-bleeding market conditions; one impulsive candle will erase long periods of bad PA.”
Source: Oliver Isaacs/X
This rise in Ethereum CME Futures OI indicated growing institutional interest, increased market activity, and bullish sentiment towards ETH.
The collaboration between State Street and Galaxy Digital
However, this is not the only positive news that has attracted investors’ attention.
Recently, State Street Global Advisors (State Street) and Galaxy Digital announced their partnership to introduce new ETFs that provide exposure to digital assets.
Both companies have indicated in separate announcements that these ETFs will go “beyond” just spotting Bitcoin ETFs, hinting at a broader range of digital asset investments.
According to a press release report released on June 26,
“This collaboration of market-leading global asset managers is designed to provide investors with the latest innovation in digital asset investing.”
This collaboration highlights the synergy between two leading companies that will provide investors with access to the “$2.4 trillion digital asset ecosystem through manager-driven strategies,” the report said.
Community response
Expansion on the same, Mike NovogratzFounder and CEO of Galaxy Digital, said:
“Expanding investment options beyond pure Bitcoin is where we see the next level of growth for the ecosystem.”
This highlights how crypto is becoming a mainstream asset class every day.
The reason the crypto community is excited about this partnership is that State Street has been focused on digital assets for over 30 years.
It has also been one of the largest ETF providers in the world, launching the first US-listed ETF in 1993 and now managing more than $4.3 trillion in assets. So the optimism is justified!
Not the first time
Interestingly enough, this isn’t the first time ETF news has spread like wildfire. Recently Brad Garlinghouse, CEO of Ripple, spoke at Consensus 2024highlighted the potential for additional ETFs in the pipeline.
He said,
“I think it’s just a matter of time, and it’s inevitable that there will be an XRP ETF, there will be a Solana ETF, there will be a Cardano ETF, and that’s great.”
Although it took decades for Bitcoin ETFs to gain approval, it has therefore opened the gates for wider cryptocurrency adoption and the possible adoption of other ETFs on a larger scale.