US SEC approves ETH spot ETF trading, but what do major VCs think?
The Unfolded X account just reported that "the U.S. Securities and Exchange Commission (SEC) has approved the trading of an Ethereum spot ETF, which is set to begin trading tomorrow (July 23, 2017)." Eric Balchunas, an ETF analyst at Bloomberg, added: "The SEC's approval of the Ethereum spot ETF is official. The final step, the 424(b) filing, is being submitted. All systems are go for the launch at 9:30 on the 23rd. It's time to get started," he said via X.
Experts believe that the approval of an ETH spot ETF and the start of trading could push the price of ETH up to $6,500. Ethereum is currently trading at $3,480. That's a whopping 88% upside potential from the current price. Since the approval of the Bitcoin Spot ETF in January, it has been the most successful launch in the history of exchange-traded products in terms of the speed of inflows. The price of Bitcoin has surged more than 58% in just two months, reaching new all-time highs.
Thomas Perfumo, head of strategy at U.S. cryptocurrency exchange Kraken, told The Block that he expects to see net inflows of $750 million to $1 billion per month for the first five to six months after the launch of the Ethereum spot ETF. "Bitcoin and Ethereum ETF products validate crypto as an asset class," he said. "People who were calling crypto "rat poison" five years ago are now creating crypto products. There is real demand, and it's at a scale that can no longer be ignored."
Meanwhile, crypto market maker Wintermute analyzed in a recent report that "Ethereum (ETH) spot ETFs may not have stronger demand than market forecasts," according to DeCrypt. "While ETH spot ETF inflows are forecast to be in the range of $4.8-6.4 billion, demand may be lower than expected. We are forecasting $3.2-4 billion, 15-20% of Bitcoin spot ETF flows, with the exclusion of staking options and lack of a narrative to attract investors as potential hurdles. Unlike BTC, which has succeeded in creating a narrative of digital gold, ETH may find it difficult to provide a reason to invest."
"An anonymous whale deposited 8,762 ETH ($30.4 million) into Binance after the U.S. Securities and Exchange Commission (SEC) approved nine ETH spot ETFs," blockchain analyst LookOnChain reported via X. "If sold, it would be worth $3.6 million. Selling it would have resulted in a loss of $3.6 million. The whale had previously withdrawn 8,762 ETH from Binance between May 27 and 29 at an average price of $3,876."
