The Chicago Board Options Exchange (CBOE) has announced that five spot Ethereum exchange-traded funds (ETFs) will be live on July 23, pending regulatory approval.
The announcement comes after the US Securities and Exchange Commission (SEC) approved rule modifications on May 23 that will allow spot Ether ETFs to be listed.
However, the launch is subject to the regulator’s ultimate approval of each fund issued’s S-1 registration statements.
Here are five Ether ETFs that are ready to trade
The 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF are the five spot Ether ETFs that will start trading.
CBOE New Issue Notification for Franklin Templeton’s Ethereum ETF. Source: CBOE
In order to compete for market share once products are ready to trade, most ETF issuers have announced their intention to temporarily waive or reduce fees to gain an early lead in the market.
Industry analysts estimate that in the months following the launch, net inflows into Ether ETFs will reach billions of dollars.
A recent Kaiko analysis referenced Ether’s 1% market depth. The analysis suggested that insufficient liquidity could lead to increased price volatility. This might lead to ether outperforming Bitcoin in terms of percentage gains.
Tom Dunleavy Sr. Research estimates that capital inflows into Ethereum ETFs could exceed $10 billion this year, with monthly flows reaching as much as $1 billion.
Dunleavy predicted that Ether would reach new all-time highs by the start of the fourth quarter and expressed confidence about the impact that would have on prices.
Approval of the Ethereum ETF was political
During a recent interview, Seyffert indicated that the political atmosphere—including actions by the Biden administration and reactions from the cryptocurrency community—had a major impact on the licensing process.
Seifert said that besides Bitcoin and Ethereum, the approval of other crypto ETFs like Solana is uncertain until significant regulatory changes are made.
He stated that a regulated market is required to protect these assets from fraud and manipulation.
According to cryptocurrency trader and investor Brian Kelly, Solana could be the next cryptocurrency to have a spot ETF in the US.
Kelly, who is also the creator and CEO of the BKCM Digital Asset Fund, asked on a recent episode of CNBC’s ‘Fast Money’, “The trade now is, who’s next?”
He at that point included, “You ought to think approximately Solana as the following option.” Bitcoin, Ethereum, and Solana are probably the top three for this cycle.”
