Cathie Wood pulls out of Ethereum spot ETF launch

According to industry sources on March 3, Cash Wood-led ArkInvest withdrew its plans to list an ETH spot ETF on March 31 (local time). The decision was made due to uncertainty over the profitability of the ETF as the race to launch an ETH spot ETF heated up. “While we remain excited about the growth potential and long-term value of Ethereum, we will no longer consider launching an Ethereum spot ETF,” the company said in a statement.

Many in the industry believe this is due to the fact that spot ETH ETFs are expected to compete with each other in a race to cut fees too low to be profitable. In fact, Bitcoin spot ETFs launched earlier this year and have been racing to cut fees. Currently, major Bitcoin spot ETFs charge between 0.2% and 0.25%. Some operators even waived fees at launch.

Meanwhile, the SEC approved an Ethereum spot ETF filed by asset manager VanEck and others on March 23rd. This comes about four months after the SEC approved a Bitcoin spot ETF. This is the first time the SEC has approved an altcoin spot ETF other than a bitcoin spot ETF. It is expected to officially launch as early as this month.

The launch of an Ethereum spot ETF is expected to send the price of Ethereum soaring, which is one of the reasons why there is widespread expectation in the market. “If the SEC approves an Ethereum spot ETF, ETH could rise to $8,000 by the end of the year,” said British investment bank Standard Chartered. Global brokerage Bernstein also predicts that “Ethereum will surge to $6,600 after the approval of the spot ETF,” adding, “Just as Bitcoin rose 75% in the weeks following the approval of the spot ETF, Ethereum will see similar gains.”