Ethereum ETF Approval Signals Institutional Acceptance and Mainstream Integration
The U.S. Securities and Exchange Commission (SEC) has approved the first Ethereum exchange-traded fund (ETF), following in Bitcoin’s footsteps. This approval marks a major milestone for Ethereum and the broader digital asset industry, signaling institutional acceptance and mainstream integration.
Ethereum Spot ETF Trading Set to Begin on Tuesday
Firms such as 21Shares, Bitwise Asset Management, BlackRock, Invesco, Franklin Templeton, Fidelity Investments, and VanEck have confirmed that Ethereum spot ETF trading will commence on Tuesday. Investors will now have direct access to Ethereum through regulated financial instruments, potentially boosting investment and liquidity in the market.
The approval of the Ethereum ETF comes after ongoing efforts to gain approval, similar to the path taken by Bitcoin ETFs. Since January, Bitcoin ETFs have seen significant investment from both retail and institutional sectors.
Learn more: Ethereum ETF explained: What is an Ethereum ETF and how does it work?
Despite these developments, Ethereum’s market reaction was relatively muted, with a 1.32% price drop. This decline is a typical “news sell-off” effect observed immediately after significant news, with prices briefly dropping to $3,422 before stabilizing around $3,475. The lukewarm reaction surprised many investors and analysts, given the importance of the SEC’s decision.
Finekia research analyst Matteo Greco stated that initial outflows from the ETF are expected to increase selling pressure.
“It’s worth noting that the Grayscale Ethereum Trust (ETHE), which has offered investors redemption options for years, may experience net outflows similar to the Grayscale Bitcoin Trust (GBTC) when the BTC spot ETF is launched.” Greco mentioned in an interview with BeInCrypto that “ETHE will become a stand-alone product of the new Grayscale Ethereum Spot ETF (Ethereum Mini Trust),” offsetting net inflows.
Learn More: Ethereum (ETH) Price Prediction 2024/2025/2030
In other news, SpotOnChain reported significant trading activity by an Ethereum whale (0xf26) who deposited 8,762 Ethereum (valued at approximately $30.34 million) on Binance.
Prior to this, whales withdrew 8,763 ETH from Binance at an average price of $3,882, resulting in estimated losses of around $34 million. Selling now would result in a loss of $3.67 million in about two months, representing a 10.8% decrease.
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In addition, part of the content is the AI translation version of the English version of the BeInCrypto article.
