The crypto world is excited as Ethereum exchange-traded funds (ETFs) edge closer to reality. According to documents filed with the U.S. SEC on July 22, NYSE Arca has officially approved the listing and trading of spot Ethereum ETFs from Grayscale and Bitwise.
While the funds still await final SEC authorization, analysts predict a July 23 launch date. Bloomberg ETF analyst James Seyffart expects to see a flurry of filings on the SEC website indicating the ETFs’ prospectuses have gone “effective.”
This development follows the Chicago Board Options Exchange’s confirmation on July 19 that five additional Ethereum ETFs are ready for trading, pending regulatory approval. These include offerings from 21Shares, Fidelity, Invesco, VanEck, and Franklin.
The SEC’s final hurdle is approving the funds’ initial securities registration S-1 forms. This comes after the agency gave the green light to issuers’ 19-b form proposing rule changes back on May 23.
Bitwise CIO predicts Ethereum surge
As the crypto community holds its breath for the ETFs’ debut, Bitwise CIO Matt Hougan has made a bold prediction. In a recent blog post, he forecasts ETH’s above $5k by year-end, citing the potential impact of ETF inflows.
Hougan’s optimism is founded upon three primary factors, one of which is Ethereum‘s current inflation rate of 0%. Another is the absence of imposed selling pressure from ETH stakers in comparison to Bitcoin miners. The last one is the significant portion of 28% of all ETH being locked in staking, effectively diminishing the accessible supply.
While Hougan expects some initial volatility as money potentially flows out of the $11 billion Grayscale Ethereum Trust upon its conversion to an ETF. He remains confident in Ethereum’s long-term prospects.
However, the ETH market has been eagerly looking forward to the introduction of ETH ETFs after the successful launch of spot BTC ETFs in January. If Hougan’s forecasts hold true, the ecosystem may experience a significant increase in mainstream acceptance and financial backing.
