Revised Article
- Ethereum Exchange-Traded Funds (ETFs) have gained approval for trading in the United States effective July 23.
- Despite Ethereum's sluggish performance, positive investor sentiment prevails.
Approval for trading Ethereum ETFs was granted on July 23, notwithstanding Ethereum's lackluster performance.
The bullish momentum surrounding Ethereum remains strong.
Ethereum ETF Approval by SEC
The US Securities and Exchange Commission (SEC) has authorized the trading of Ethereum ETFs.
Prominent companies like BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy have received approval.
This decision came after the SEC supported their S-1 registration statements on July 22.
These ETFs can now be traded on major stock exchanges such as Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange.
Interestingly, this approval coincided with President Joe Biden ruling out re-election.
Reaction and Projections for Ethereum
The announcement had limited impact on Ethereum's pricing.
Nevertheless, investor sentiment remains favorable.
Market analyst RunnerXBT advised investors to hold their positions, predicting higher inflows into Ethereum ETFs than anticipated.
Conversely, cryptocurrency analytics firm Kaiko forecasts a maximum 24% rise in Ethereum's price by year-end due to subdued demand for spot Ethereum products.
The introduction of Ethereum ETFs is expected to significantly alter the market dynamics of the Grayscale Ethereum Trust (ETHE) and its pricing mechanism.
Investors are expected to shift their investments from ETHE to the new spot ETFs, potentially causing outflows from ETHE.
As ETHE transitions to a spot ETF, it is expected to become more liquid, prompting many investors to sell off.
This transition, coupled with the tightening discount, indicates traders are prepared to cash out at full net asset value prices, realizing profits.
Technical analysis indicates that Ethereum's bullish trajectory continues to outshine bearish pressure.
