The US Securities and Exchange Commission (SEC) is on the brink of potentially approving the latest adjustments to spot Ethereum ETFs by July 4th. Discussions between asset managers such as BlackRock, Franklin Templeton, and Grayscale Investments, along with regulators, are reaching their final stages. This progress comes after the successful launch of spot Bitcoin ETFs in January by many of these firms.
Bloomberg’s ETF analyst Eric Balchunas has hinted that the approval for spot Ethereum ETFs could come before the July 4th US holiday, possibly as early as July 2nd. Despite this speculation, the SEC and Chair Gary Gensler are remaining tight-lipped about the exact timeline for the launch. In a recent Bloomberg interview, Gensler expressed optimism about approving these investment vehicles but did not provide a specific timeframe, only suggesting a summer release.
Bitwise’s CIO Matt Hougan predicts that spot Ethereum ETFs in the US could attract over $15 billion in net inflows within the first 18 months of trading. Hougan based this estimate on the market size of Ethereum in comparison to Bitcoin, with Ethereum’s market cap currently standing at $432 billion, a fraction of Bitcoin’s $1.26 trillion market cap. This 3:1 ratio indicates the potential for significant investment in Ethereum ETFs.
As of now, almost $56 billion of Bitcoin’s total market cap is invested in spot Bitcoin ETFs in the US. Hougan anticipates that this figure could reach $100 billion by the end of 2025, pointing to the substantial growth potential for spot Ethereum ETFs as well. With the increasing interest and acceptance of cryptocurrency as a legitimate investment asset, the approval and launch of spot Ethereum ETFs could open up a new avenue for investors to diversify their portfolios.
Overall, the future looks promising for spot Ethereum ETFs in the US. With regulatory approval seemingly on the horizon and market predictions pointing towards significant growth potential, investors and asset managers alike are eager to see these investment vehicles hit the market. As the cryptocurrency landscape continues to evolve, the introduction of spot Ethereum ETFs could mark a major milestone in the mainstream adoption of digital assets in the financial world.
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