- SEC’s approval of spot Ethereum ETFs on July 23 may boost institutional demand, potentially causing a supply crunch.
- Analysts expect Ethereum ETFs to attract $10 billion this year, with monthly capital flows reaching up to $1 billion.
- Ethereum’s market performance could see new all-time highs by early Q4 due to high inflows and increased demand.
Market observers and analysts predict that spot Ethereum ETF trading will be authorized by the US Securities and Exchange Commission (SEC) by July 23. Cboe’s new listing confirms this optimism. ETF Store President Nate Geraci highlighted CBOE’s new listing, stating it’s “almost go time.”
The listings include spot Ethereum ETFs from Fidelity Investments, Franklin Templeton, Invesco, 21Shares, and VanEck. Their first day of trading is set for July 23, reflecting the anticipated approval. These investment asset management firms have invested significant resources to comply with the Commission’s standards.
Anticipated Impact on Ethereum Market
BlackRock, Franklin, Bitwise, Invesco, Grayscale, and Fidelity recently filed amended S-1 forms for their Ethereum ETFs. These firms hope for a possible listing next week. Their filings focused on management fees, indicating they are ready for trading. Increased institutional demand for Ether could spark a supply crunch. The Ethereum Exchange Reserve, tracking the amount of Ether available on exchanges, is at multi-year lows.
A Kaiko report touched on Ether’s 1% market depth. Lower liquidity could spark increased price volatility. This could cause Ether’s price to be higher in the face of increased demand. Moreover, Ether might outperform Bitcoin (BTC) in percentage terms.
Institutional analyst Tom Dunleavy believes inflows into Ethereum ETFs could hit $10 billion this year. He expects up to $1 billion in monthly capital flows. Dunleavy stated, “I expect a very positive price impact, sending us to new all-time highs by early Q4.”
Long-Term Outlook for Ethereum
Bitwise’s chief investment officer, Matt Hougan, shared similar sentiments. He explained that Ethereum stakeholders were not as intent on selling their assets as Bitcoin holders. Hougan claimed that 28% of Ether’s supply was already Separated. He also cited increased withdrawals from exchanges to colder storage as a sign of expected future price appreciation.
Difficulties may arise from issues such as inadequate supply, price fluctuation, and, subsequently, high demand and inflow. At the start of Q4, analysts brightened their outlook on ETH for the long term and its market and forecasted new record highs. The financial community closely observed the proceedings of the case of SEC and was waiting for the final verdict that could affect the market of Ethereum.
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