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Ethereum ETFs Face Uncertain Demand Amid Regulatory Hurdles
2024-07-23 05:50:08
Markets
Finance
Blockchain

Ethereum ETFs Face Uncertain Demand Amid Regulatory Hurdles

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Wintermute and Kaiko forecast lackluster Ethereum ETF demand, noting potential inflows and volatility. BlackRock, Fidelity, and Grayscale among 8 issuers set to launch ETH ETFs.

Regulatory restrictions on staking hamper ETF competitiveness. Grayscale reveals 2.5% management fee, others range from 0.15-0.25%.

Kaiko data shows ETH implied volatility surged to 67%. Price sensitivity expected with upcoming ETF inflows.

Grayscale's ETHE fund anticipates outflows transitioning to spot ETF. Spot Ethereum ETF trading begins on July 23 at major US exchanges.

Analysts anticipate a price push to $6,500 with Ethereum ETF approvals. Ether ETFs greenlit by SEC, signaling growing acceptance of cryptocurrencies in traditional finance.

Related news on that topic:

Spot Ether ETFs: NYSE Arca Approval and SEC's Authorization ... Awaited

NYSE Arca has given the green light to spot Ethereum ETFs from various companies, including Grayscale, Bitwise, and Fidelity. These funds are now awaiting approval from the SEC on their S-1 forms and are expected to launch with management fees ranging from 0.15% to 0.25% on July 23. Despite the low market depth of Ether, indicating reduced liquidity, the launch of these ETFs could lead to increased price volatility and drive up the demand for ETH. Furthermore, the introduction of Ethereum ETFs may pave the way for the emergence of other altcoin ETFs, such as Solana's native token, SOL. SEC Commissioner Hester Peirce suggests that Ethereum ETFs may eventually allow for staking, which could pay around 4% APY and secure the proof-of-stake blockchain. It is predicted that these ETFs could attract over $5 billion in inflows. Additionally, Solana's SOL token has been experiencing significant price growth, driven by rising fundamentals and hopes for a potential ETF.

Bitcoin ETFs and Inflows Drive Market Sentiment

Despite a recent dip in Bitcoin's price, long-term holders are accumulating the digital asset and Bitcoin spot ETFs are seeing significant inflows. The price drop may be attributed to sell pressures from the Mt. Gox hack repayments and the German government's Bitcoin sale. However, Bitcoin has found support in the $55,000-$58,000 range, and investors are taking advantage of lower prices. Spot Bitcoin ETFs have attracted $1 billion in just three days, with BlackRock and Fidelity leading the inflows. The market sentiment remains bullish, with predictions of Bitcoin reaching $100,000 driven by ETF inflows. Meanwhile, market dynamics suggest a potential rise to $150,000 by year-end. The German government's completion of its Bitcoin sell-off has alleviated fears in the crypto market. However, the market's volatility and complexities, along with regulatory hurdles, continue to shape Bitcoin's climb. Nevertheless, Bitcoin presents a significant investment opportunity, and its market fundamentals and potential technological use cases support its long-term growth.

Read 3 more recent news on this topic

The press radar on this topic:

CoinDesk
22. Juli 2024 um 20:25

Ethereum ETFs Could See Underwhelming Demand, Two Research Firms Predict

Finance
Cryptocurrencies & blockchain
Crypto firms Wintermute, Kaiko predict underwhelming demand for Ethereum ETFs; Wintermute sees $4B inflows, 24% ETH price gain; Kaiko notes low demand for previous Ethereum launches, increased volatility; 8 issuers ready to list ETH ETFs in US, including BlackRock, Fidelity, Grayscale; Regulators blocked staking, reducing ETF competitiveness; Issuers reveal management fees, Grayscale 2.5%, others 0.15-0.25%; Kaiko data shows ETH implied volatility jumped to 67% by July 26.
Cointelegraph.com News
22. Juli 2024 um 21:12

Breaking: Spot Ethereum ETFs to begin US trading on July 23

Cryptocurrencies & blockchain
Finance
Economy
Technology
Spot Ether ETFs from BlackRock, Fidelity, Grayscale, 21Shares, Bitwise, Franklin Templeton, VanEck, Invesco Galaxy approved for Nasdaq, NYSE, CBOE on July 23. Fees 0.15-0.25%, some waived. Grayscale Ethereum Mini Trust to waive fees. Billions expected. Biden withdrawal a "win for crypto" per eToro analyst.
CoinDesk
22. Juli 2024 um 20:52

Ethereum ETFs Approved by SEC, Bringing Popular Funds to Second-Largest Cryptocurrency Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s Impact on Ethereum's price

Finance
Cryptocurrencies & blockchain
Ethereum ETFs approved, less inflows than Bitcoin. Ethereum as 'digital App Store', lacks Bitcoin's narrative. Wormhole's W Token 999% weekly return. VanEck bullish on Layer 2s. Analysts predict Ethereum ETFs could move price to $6,500.
Yahoo Finance
22. Juli 2024 um 22:18

Ether ETFs to start trading after SEC green light: Money managers

Finance
Cryptocurrencies & blockchain
Ether ETFs approved by SEC; money managers to oversee new funds; trading could start soon; potential for ether in 401(k)s, IRAs, pension plans; increased mainstream acceptance of crypto; bitcoin ETFs also approved earlier; crypto industry facing regulatory changes; BlackRock CEO sees role for bitcoin; BlackRock's new ether and bitcoin ETFs; Trump to speak at Bitcoin 2024 conference; Biden administration's crypto crackdown; crypto market meltdown in 2022.
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