The price of Ether just surged past $3,300, with expectations high that spot Ethereum ETFs might be approved, and launched by the end of this week.
Good gains coming?
Ether is now, at the time of writing trading at $3,330, showing a nice 16% increase from its price of $2,909 last week. The long traders are happy, no doubt.
ETF analyst Nate Geraci, who is also the president of The ETF Store, shared on social media that he believes eight spot ETH ETFs could be approved by week’s end. In a July 14 post, Geraci said he saw no reason for further delays.
Welcome to spot eth ETF approval week…
I’m calling it.
Don’t know anything specific, just can’t come up w/ good reason for any further delay at this point.
Issuers ready for launch.
— Nate Geraci (@NateGeraci) July 14, 2024
“Welcome to spot ETH ETF approval week. Don’t know anything specific, just can’t come up with good reason for any further delay at this point.”
Paperwork everywhere
An anonymous source close to the situation leaked to the press that these spot ETH funds are very likely to launch soon.
Last week, several issuers, including VanEck and 21Shares, submitted their revised registrations in hopes of receiving the SEC’s final approval for listing these ETFs.
In case of Bitcoin ETFs, these kind of revisions were the last brushstrokes before the actual approval.
Many analysts believe that the launch of these ETFs will boost the price of ETH in the coming months, just like it did with the BTC’s price.
Tom Dunleavy, a managing partner at crypto investment firm MV Global, shared that the funds could bring in up to $10 billion in new investments, and this fresh influx is expected to push Ether prices to new all-time highs by year-end.
Who will buy it, and why?
Dunleavy also mentioned that Ether ETFs might be easier for Wall Street to adopt compared to Bitcoin ETFs.
He argued that ETH’s functionalities, like generating cash flows and being likened to a tech stock or an internet bond, make it more understandable for traditional investors than Bitcoin’s digital gold narrative.
“We believe that there will be strong buy pressure with a much more clear narrative that traditional investors can understand. ETH has cashflows. It can be described as a tech stock, the app store of crypto, or an internet bond. This is a much easier sell for financial advisors than digital gold.”
Dunleavy thinks that while Ether’s price action clearly lagged behind Bitcoin for the past 18 months, it could quickly rebound after the funds are launched.
He believes the strong buying pressure and clearer narrative around ETH will help it gain traction with financial advisors and investors alike.
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