Lưu trữ cho từ khóa: Ethereum ETF

Altcoin

Ethereum ETFs: Potential inflows and Ethereum price impact analysis

Để lại phản hồi

Today, Ethereum ETFs made their long-awaited debut on major stock exchanges. This article will analyze projected inflows for Ethereum ETFs and how they might influence the future price of ETH. By comparing the recent success of Bitcoin ETFs, we will explore the potential impact on Ethereum prices in the coming months.

Understanding Bitcoin ETF inflows and their implications for Ethereum

While Bitcoin ETFs have seen substantial inflows, expectations for Ethereum ETFs are more modest. Since their inception, Bitcoin ETFs have attracted significant investor interest. As of July 18, these financial instruments saw a net inflow of $16.67 billion over approximately six months. Despite being the second-largest cryptocurrency, Ethereum is often perceived differently from Bitcoin. It is not typically seen as a store of value or “digital gold.” This distinction, combined with Bitcoin’s more established market position, suggests that Ethereum may not attract the same level of ETF inflows as Bitcoin.

Source: Farside Investors

Eric Balchunas, a senior ETF analyst at Bloomberg, has provided conservative estimates for Ethereum ETF inflows and believes that these funds will attract only 10-15% of the inflows seen by Bitcoin ETFs.

Additionally, when looking at the derivatives market, the open interest for Ethereum futures and options on the CME is approximately $1.67 billion, while Bitcoin’s open interest stands at $12.56 billion. The CME, which mainly serves institutional investors, shows that Ethereum’s share is about 13.3% of Bitcoin’s. In the broader derivatives market, Ethereum’s total open interest is $20.74 billion compared to Bitcoin’s $54.1 billion, which translates to a 38.34% ratio. These figures reinforce the conservative projections for Ethereum ETF inflows compared to Bitcoin.

Academic insights into ETF effects on market prices

A question often arises: why would ETF inflows impact the price of an underlying asset, such as Ethereum? Several academic studies have confirmed ETFs’ significant influence on underlying asset prices. Research by Ben-David et al. (2018) demonstrates that ETFs can lead to increased volatility and price deviations from fundamental values in the securities they track. The study attributes these effects to the mechanical rebalancing and trading strategies employed by ETFs, which can amplify price movements and introduce non-fundamental shocks into the market.

Further supporting evidence comes from Luca J. Liebi’s literature review. The research highlights ETFs’ role in improving market liquidity and price efficiency under normal conditions. Empirical evidence suggests that ETFs, particularly those with high leverage, can magnify price changes in underlying assets due to their rebalancing activities. These studies collectively indicate that ETF inflows tend to push up the prices of the assets they track, lending credence to the hypothesis that Ethereum ETFs could similarly impact ETH prices.

Potential inflow scenarios for Ethereum ETFs

Based on the analysis above, four potential scenarios for Ethereum ETF inflows emerge:

Percentage of Bitcoin ETF Inflows Ethereum ETF Inflows
10% $1.67B
15% $2.50B
20% $3.33B
25% $4.17B

These projections estimate the potential inflows Ethereum ETFs might experience by the end of 2024, using the $16.668 billion figure for Bitcoin as a baseline.

Ethereum price impact analysis

To estimate the price impact of these potential inflows, four multipliers are considered: 0.5x, 1x, 1.5x, and 2x. These multipliers reflect varying degrees of price sensitivity to ETF inflows.

10% 15% 20% 25%
0.5x $3,570 $3,655 $3,740 $3,825
1x $3,740 $3,910 $4,080 $4,250
1.5x $3,910 $4,165 $4,420 $4,675
2x $4,080 $4,420 $4,760 $5,100

Assuming a current Ethereum price of $3,400, the estimated price impact by the end of 2024, solely from ETF inflows, would range from $170 to $1,700. With more likely multipliers (1x to 1.5x), the price increase would be between $340 and $1,275. This suggests a potential Ethereum price range of $3,740 to $4,675.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

Bitwise becomes 1st US ETF to post Ethereum addresses

Để lại phản hồi

Bitwise disclosed several ENS addresses used to store Ethereum tokens for its spot ETH ETF, which launched on Tuesday.

Bitwise became the first U.S. spot Ethereum (ETH) ETF issuer to publish wallets after committing to transparency for its ETHW fund. The wealth manager made a similar move in January when it disclosed public Bitcoin (BTC) addresses for assets underpinning the BITB spot BTC ETF. 

Five addresses assigned Ethereum Name Service (ENS) tags were posted shortly before ETHW and eight other funds started trading. ENS sub-names simplify Ethereum addresses, which are typically long and difficult to read. Instead of an alpha-numeric sequence, the ENS protocol designates a shorter label, such as “abc.eth,” to an address.

Bitwise pledged to add more addresses as the fund grows so users and investors can track its Ether-related activity on-chain. 

“This is the sort of transparency only crypto makes possible. It allows anyone to verify ETHW’s holdings and flows directly on the blockchain, and it lets people easily build public dashboards or write smart contracts that utilize the available ENS records”, an excerpt from the announcement read. 

The update received applause from the ENS protocol. “ETHW is now the most crypto-native ETF,” an ENS tweet on X said. 

Bitwise, competitors hit $361m trading volume in 90 minutes

Nine spot Ethereum ETFs from eight issuers captured over $361 million in trading volume within the first hour and a half of launching. Ether funds boasted over 55% of Bitcoin ETF volume in the same opening hour. 

VanEck’s head of digital asset research, Matthew Sigel, noted that Grayscale’s Ethereum Trust (ETHE) accounted for an estimated 24% of Tuesday’s spot ETH ETF activity so far. Most of the trading seemed to stem from Grayscale selling, but ETF data typically aggregates the following day, meaning a clearer picture should emerge by Wednesday. 

Meanwhile, Ethereum’s market price was unfazed by the news and Wall Street’s trading. Many speculated how Ether might react, either with a price increase or a decline. 

“Predicting whether ETH will skyrocket is challenging. The reality is no one knows, so we can only look at trends and previous price action,” P2P’s CMO Rick Bagshaw told crypto.news via email. 

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

ETH ETFs see over $1b of trading volume on launch day

Để lại phản hồi

Investors showed strong enthusiasm on the first day of trading for the newly launched Ether exchange-traded funds, transacting over $1 billion worth of shares.

According to FarSide data, the trading day for these ETFs concluded with a significant net inflow of $106.7 million.

Ethereum ETFs attracted $106.6 million in inflows on launch day | Source: FarSide

Leading the influx were BlackRock and Bitwise’s ETFs. BlackRock’s iShares ETF (ETHA) topped the charts with $266.5 million in net inflows, closely followed by Bitwise’s Ethereum ETF (ETHW), which captured $204 million.

Fidelity’s Ethereum Fund (FETH) also saw substantial interest, accumulating $71.3 million.

In contrast, Grayscale’s Ethereum Trust (ETHE) experienced substantial outflows, losing $484.9 million, which amounted to 5% of its former $9 billion valuation. Originally launched in 2017, ETHE allowed institutional investors to purchase ETH with a six-month lock-up period.

The shift to a spot ETF format has eased the process of selling shares, contributing to the significant outflows observed on the launch day.

Grayscale also saw new money entering its Ethereum Mini Trust, which attracted $15.2 million in inflows. Other funds like Franklin Templeton’s (EZET) and 21Shares’ Core Ethereum ETF (CETH) recorded inflows of $13.2 million and $7.4 million, respectively.

Despite the strong trading volume, which reached $1.077 billion, it fell short of the levels seen during the launch of spot Bitcoin ETFs in January, which garnered five times that amount.

The price of Ether (ETH), which ranks as the world’s second-largest cryptocurrency, experienced a downturn on July 23, affecting the performance of these new ETFs. By the close of the market, Ether was trading flat at $3,486.75.

The introduction of these ETFs marks a significant development in the cryptocurrency industry’s ongoing efforts to have Ether classified as a commodity rather than a security.

While the Securities and Exchange Commission has not definitively classified Ether, the filing documents describe the new products as commodity-based trusts.

Ophelia Snyder, co-founder and president of 21Shares, described the launch of Ethereum ETFs in the US as a pivotal moment for the digital assets industry, noting that trading had proceeded as expected and emphasized the importance of Ethereum’s potential in the long term.

“The demand is there, and now U.S. investors can gain market exposure to the innovative power of the Ethereum blockchain through the ETF wrapper on a regulated exchange,” Snyder told crypto.news.

She further noted this development is positive for both professional and retail investors and will help Ethereum continue to play a significant role in the future of internet and technology investments.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

Fidelity discloses $4.7 million seed investment for its spot Ether ETF

Để lại phản hồi

Fidelity has amended its S-1 filing for a spot Ethereum ETF, according to documents filed with the U.S. Securities and Exchange Commission (SEC) on Friday.

The asset management firm is the first to file an amended S-1 Registration Statement with the SEC, kicking off what ETF analysts say could be a busy day for firms looking to secure approval to list spot Ether ETFs.

Fidelity’s amends S-1 filing

Fidelity’s filing disclosed a .7 million seed investment for its ETF, with affiliate FMR Capital having purchased 125,000 shares to seed the funds’ basket. The company said in the filing that FMR acquired the 125k shares at per share and the proceeds then purchased 1,250 Ether.

While it disclosed the seed capital for the Ether spot ETF, Fidelity did not include fees. Eric Balchunas, a senior ETF analyst at Bloomberg, says this could be a “waiting” game for the issuers as they gauge what others offer.

“Fidelity kicking off the the S-1-athon. No fee included yet tho (Franklin only one w fee so far at 19bps). Bitwise didn’t include either. Everyone likely waiting till last min and/or on BlackRock to disclose to see what they need to orbit around,” he posted on X.

In January, ahead of SEC’s approval of spot Bitcoin ETFs, issuers looked to take advantage by revealing very low fees. Grayscale, which set its fee at 1.5%, has seen massive outflows from its GBTC spot Bitcoin ETF.

No staking

In its update, Fidelity also confirmed that the asset manager’s ETF will not include staking. In proof-of-stake mechanisms, ETH holders can lock up their assets to participate in transaction validation and in return earn staking rewards.

The firm’s initial filing in March had indicated the inclusion of staking, before an update in May removed that.

When will spot Ether ETFs start trading?

SEC approved spot Ethereum ETFs in May, giving a nod to applications by Fidelity, BlackRock, VanEck, Grayscale, Invesco Galaxy, Franklin Templeton, ARK 21Shares, and Bitwise.

However, the approval of the form 19b-4s was only the first step and a nod to S-1s will have to happen before the ETFs hit exchanges for trading. In recent comments, SEC chair Gary Gensler told lawmakers that he expects the Commission to approve S-1s “in the summer.”

Analysts believe this could be as soon as early July, with Bloomberg’s Balchunas noting that the launch date could be as early as July 2.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

Ethereum secures ‘major win’ as SEC drops investigation

Để lại phản hồi

Ethereum has achieved a “major win” as the SEC closes its investigation into Ethereum 2.0, confirming that sales of ETH are not considered securities transactions.

Ethereum, the second-largest crypto by market capitalization, has scored a significant victory as the Enforcement Division of the U.S. Securities and Exchange Commission (SEC) announced the closure of its investigation into Ethereum 2.0, blockchain firm Consensys said in an X post.

The SEC’s decision means that the agency “will not bring charges alleging that sales of ETH are securities transactions,” Consensys explains.

“The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime.”

Consensys

The latest development comes after a Jun. 7 letter to the SEC from Consensys, which requested confirmation that the recent approval of spot Ethereum exchange-traded funds (ETFs), assuming ETH to be a commodity, would result in the closure of the Ethereum 2.0 investigation.

Despite the positive outcome, the battle for regulatory clarity between Consensys and the SEC continues as the blockchain firm is seeking a declaration that offering user interface software such as MetaMask Swaps and Staking doesn’t violate securities laws.

The closure of the investigation marks a significant step forward for Ethereum and the whole industry, which has been grappling with regulatory uncertainties and enforcement actions lately. Following the news, ETH price soared 3% and is now trading at ,555, according to data from CoinMarketCap.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Phân tích

Ethereum price teeters on the edge: will the spot ETH ETF approval trigger a massive rally?

Để lại phản hồi

Will the spot Ether ETF approval finally break Ethereum’s price stagnation and trigger a significant rally? Insights and analysis.

Ethereum (ETH) price predictions are buzzing with speculation, fueled by the possibility of a spot Ethereum exchange-traded fund (ETF) going live next month. 

Amid the current volatility in the crypto market, ETH has experienced a cooling effect, declining by over 4% in the last week and trading at around ,500 as of June 17. 

ETH one-month price chart | Source: CoinMarketcap

This dip in Ethereum’s price mirrors a broader trend where Bitcoin (BTC) and other altcoins have struggled to maintain bullish momentum, resulting in recent retracements. 

Interestingly, while BTC has declined by over 2% in the past 30 days, currently trading between -66k levels, ETH has managed to gain over 12% in the same period.

ETH vs BTC one-month price chart | Source: CoinMarketCap

On May 23rd, the SEC approved eight 19b-4 filings to list spot Ether ETFs on various U.S. exchanges. However, trading cannot commence until the required S-1 registration statement approvals are in place, which has provided bullish momentum to ETH’s price. 

In a recent update, Bloomberg ETF analyst Eric Balchunas mentioned that spot Ether ETFs could potentially begin trading as early as July 2nd. 

Balchunas shared on X (formerly Twitter) that the U.S. Securities and Exchange Commission (SEC) staff comments on the spot Ether ETF applicants’ S-1 applications were “pretty light, nothing major,” and they were asked to resubmit within the week. 

Balchunas suggested that, while anything is possible, this timeline seems plausible based on current information. 

However, on June 13, SEC Chair Gary Gensler provided a broader timeframe, indicating that spot Ether ETFs might start trading by the end of September, depending on how swiftly issuers can address SEC comments.

Amid these mixed reactions, what is happening with ETH price, and what does market sentiment suggest about Ethereum price predictions? Let’s find out.

Whale activity and TVL data

As the possibility of a spot Ether ETF draws closer, whales are making moves that could heavily influence current price action. 

In a tweet on June 16, ali_charts reported that Ethereum whales have purchased over 700,000 ETH in the past three weeks, totaling approximately .45 billion. 

Another tweet from a crypto analyst noted that the number of Ethereum addresses holding more than 10,000 ETH has increased by over 3% in the last four weeks. 

To put this into perspective, data from Dune Analytics shows that the top 1,000 ETH holders control 38.93% of the total ETH supply. Among them, the top 100 holders alone possess 21.34%, while the top 500 holders command 33.86%.

Amid this whale activity, Ethereum’s Total Value Locked (TVL) remains strong, commanding over 61% of the total TVL share in the crypto market. As of June 17, Ethereum’s TVL stands at .186 billion, more than double the billion at the start of the year. 

ETH TVL data | Source: DeFi LIama

Leading the charge is Lido, ETH’s liquid staking platform, which has seen a 14% increase in TVL over the past month, reaching .64 billion. 

Following closely is the ETH restaking platform Eigenlayer, with a massive 25% increase in its TVL, now over billion.

The implications of these whale movements and the strong TVL figures are profound. If the spot Ether ETF is approved, it could attract even more retail and institutional investment, driving prices and TVL levels higher. 

Meanwhile, the whales’ recent accumulation suggests they are positioning themselves for this potential surge, betting on the possibility that spot ETH ETFs will go live soon.

What do the experts think?

Michaël van de Poppe, a well-respected analyst, mentioned the potential launch of spot Ethereum ETF as a major market event. 

He notes that the approval of the 19b-4 files led to a substantial rally in ETH prices, with a single-day surge exceeding 20%, pushing ETH to ,800. However, this initial excitement was tempered by a subsequent 10% price decline as the market awaits the approval of the S-1 files. 

Van de Poppe suggests that this period of uncertainty might be a classic “Sell the Rumor, Buy the News” scenario, with the ETF approval potentially signaling a broader acceptance of Ethereum as a commodity, thereby benefiting the entire ecosystem.

In a similar vein, EmperorBTC provides a swing trader’s perspective, hinting at the bullish implications of the ETH ETF announcement for the entire crypto market. 

He suggests that the ETF will provide a new use case for Ethereum, which could lead to a significant influx of capital into not only ETH but also other altcoins. 

His perspective aligns with the idea that the recent price retrace was necessary to shake out impatient investors, setting the stage for a strong accumulation phase and subsequent price surge, potentially mirroring the 2020 Bitcoin halving event.

Another analyst drew parallels between the expected ETH ETF and the earlier Bitcoin ETF approvals. 

The launch of Bitcoin ETFs initially led to a short-term price dip, largely due to the “sell the news” phenomenon and the impact of Grayscale’s GBTC selling. 

However, in the long term, BTC ETFs have been a net positive for Bitcoin prices. The analyst believes that while there might be a similar initial dip for ETH due to market shock and the Grayscale ETHE product, the long-term outlook remains bullish. 

This is partly because the ETHE discount has already narrowed, reducing the potential for significant sell-offs once the ETFs go live.

ETH price prediction: long-term view

According to a crypto analyst, based on technical analysis, ETH is currently trading within a bull flag or parallel channel. 

A breakout above the ,000 resistance could trigger a strong bullish move, potentially pushing prices towards the ,000-,000 range. Conversely, if ETH breaks down below the support level at ,650, a decline towards ,152 could occur.

When it comes to Ethereum price prediction based on algorithmic forecasting websites, there are varied perspectives on where ETH might be headed in the coming years. 

According to Priceprediction.net, Ethereum price prediction for 2024 suggests ETH could reach around ,947. On the other hand, Digitalcoinprice is more optimistic, predicting a higher price of ,365 for the same year.

Looking ahead to mid-decade, Ethereum price predictions for 2025 also show variation. Priceprediction.net anticipates ETH could rise to ,847, while Digitalcoinprice forecasts a potentially higher figure of ,971 by 2025.

The long-term Ethereum price prediction for 2030 diverges significantly. Priceprediction.net projects a staggering ,089, whereas Digitalcoinprice offers a more conservative estimate of ,786 for 2030.

Algorithmic forecasts provide useful insights but are inherently speculative and subject to various market factors. You should be aware of the risks and uncertainties involved. 

Remember, never invest more than you can afford to lose. The crypto market is highly volatile, and prices can fluctuate dramatically. 

It’s crucial to do your own research, stay informed, and make decisions based on your risk tolerance and investment goals.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Bitcoin

Ethereum ETFs could go live in July, analyst says

Để lại phản hồi

Bloomberg analyst Eric Balchunas expects spot Ether (ETH)  exchange-traded funds (ETFs) to begin trading in the U.S. in July.

Balchunas updated his forecast for the official launch of spot Ether ETFs, moving the over/under date to July 2.

The crypto expert noted that the U.S. Securities and Exchange Commission (SEC) staff had sent comments on the S-1 filings to issuers, describing them as “pretty light” without major issues. 

He mentioned that the SEC has asked for responses within a week, suggesting a decent chance that the ETFs could be declared effective the following week, potentially before the “holiday weekend.”

Balchunas emphasized that while anything is possible, this is their best estimate at the moment.

On June 13, SEC Chairman Gary Gensler provided some clarity on ETH ETFs during his testimony to Senator Bill Hagerty.

Gensler indicated that he expects the S-1 filings for spot Ethereum ETFs to be approved by the end of the summer. This statement has reinforced the belief that while there may be some delays, approval will likely happen within the next few months.

Balchunas also mentioned that the issuers of spot Ethereum ETFs were waiting for feedback from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings, which they had submitted two weeks earlier.

He explained that this delay was attributed to Corp Fin reviewing these documents for the first time, highlighting that this unexpected situation stemmed from a likely last-minute political shift within the SEC, which surprised Corp Fin as well.

Balchunas further emphasized that there is uncertainty about how quickly Corp Fin could prioritize and process the filings. 

However, some observers believe Ethereum ETFs may not attract as much attention as Bitcoin  (BTC) ETFs because they do not offer staking capabilities.

SEC Commissioner Hester Peirce, known for her liberal stance on cryptocurrencies and nicknamed “Crypto Mom,” has expressed skepticism regarding the SEC’s treatment of Ethereum. Peirce has highlighted that historically, the SEC has categorized Ethereum as a security, unlike Bitcoin, which is classified as a commodity.

The SEC has maintained that Ether is a security, which introduces a distinct set of challenges compared to the approval process for Bitcoin ETFs,” Peirce remarked. 

The Ethereum ETF journey so far

The United States Securities and Exchange Commission (SEC) has initiated the approval process for Ethereum exchange-traded funds (ETFs), marking a notable advancement for the cryptocurrency industry.

On May 23, the SEC approved eight 19b-4 filings. However, trading of these ETFs cannot commence until they obtain the required approvals for their S-1 registration statements.

The 19b-4 forms are regulatory filings that propose amendments to current rules or regulations, facilitating the listing and trading of new securities. Approval of these forms signifies the SEC’s authorization for exchanges to list the ETFs, although it does not ensure immediate commencement of trading for the ETFs.

This progress represents a significant advancement in the approval journey for Ethereum ETFs, which the cryptocurrency community has eagerly awaited. 

Concurrently, the SEC is reviewing the S-1 registration statements filed by Ethereum ETF issuers. These statements offer comprehensive details about the companies and the specific securities they plan to offer. 

At the time of writing, the price of Ethereum (ETH) is hovering around ,562.97, representing a 2.5% increase in the last 24 hours. However, the world’s second-largest crypto is still down by 3.5% on the weekly timeframe, according to CoinGecko data.

 

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

Gary Gensler: Ethereum ETFs likely approved by end of summer

Để lại phản hồi

Spot Ethereum ETF supporters were handed a win during a Senate hearing, as SEC Chair Gary Gensler said applications were advancing. 

Speaking to a subcommittee of the Senate Appropriations Committee, U.S Securities and Exchange Commission (SEC) chair Gary Gensler hinted towards a full regulatory approval for spot Ether (ETH) ETFs could come by the end of September. 

Gensler said at the budget hearing on June 13 that the final batch of filings, known as S-1s or registration of securities, has reached staff review. The commission already approved proposed rule changes to list spot ETH ETFs, also called 19b-4, last month.

Although the agency’s top official confirmed that Ethereum ETFs will likely start trading soon, Gensler’s vague stance on Ether’s asset status continued. The SEC chair refused to categorically say whether the largest decentralized finance native token is a commodity or a security. 

Gensler’s counterpart at the Commodity Futures Trading Commission, Rostin Behnam, has adopted an opposing view. “Yes,” answered Behnam when asked if Ether should be classified as a commodity. 

While experts noted that issuers filed spot ETH ETF bids in a non-security manner, it remains unclear how U.S. regulators and policymakers will officially approach the asset. 

However, the removal of all staking language from applications suggests that Ethereum’s proof-of-stake (PoS) consensus mechanism is likely under SEC scrutiny. 

The securities agency has launched multiple enforcement actions and sent Wells Notices to Ethereum adjacent providers like Consensys and Uniswap, further solidifying Gensler’s view on the matter. Still, considering political shifts in recent months, inquiries into Ether’s underlying technology may also be dead in the water. 

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

ProShares seeks SEC nod for spot Ethereum ETF listing on NYSE

Để lại phản hồi

ProShares, a prominent issuer of exchange-traded funds (ETFs), has filed a proposal to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).

According to the filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will use Coinbase Custody Trust Company for ETH custody.

The asset manager noted that the firm and its associated parties will not engage in activities related to Ethereum staking.

Crypto.news reported that potential spot Ethereum ETF issuers have revised their 19b-4 and S-1 filings to exclude staking components. These revisions aim to address the SEC’s position on staking for spot Ethereum ETFs.

However, the approval of these ETFs without staking capabilities may discourage investors who seek additional yield from staking rewards.

Typically, individuals who buy, hold, and stake ETH can earn staking rewards, resulting in extra yield. Excluding the staking feature means spot Ethereum ETFs will not offer these additional benefits to investors.

The SEC has 45 days, extendable to 90 days, from the notice publication date to respond to the filing. Since ProShares’ spot ETH ETF has been filed on June 6, 2024, approval could be expected by late July 2024.

This proposal follows ProShares’ recent introduction of two Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively.

Both ETFs are set to be listed on the NYSE on Friday, June 7.

ProShares is renowned for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts. However, ProShares has not pursued a spot Bitcoin (BTC) ETF, unlike some major asset management firms like Blackrock, Grayscale, and Fidelity.

It is crucial to note that the spot Ethereum ETFs require approval for both filings to be officially traded in the market. The approval in May was solely for the 19b-4.

Analysts anticipate that the final approval for these ETFs might occur in July 2024.

These products are expected to provide investors with new levels of flexibility and strategy, enabling more precise navigation of the volatile crypto market.

Meanwhile, the Bitcoin ETF has attracted .4 billion after noting consecutive inflows for the last 15 days, as reported by Senior Bloomberg ETF analyst Eric Balchunas in a recent X post.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News