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US Spot Ethereum ETF To Record $500M Influx Post SEC Approval – Crypto News

Published

2 years ago

May 23, 2024

Dripp

The anticipation surrounding the potential approval of a Spot Ethereum ETF by the U.S. SEC has taken the crypto market by storm in recent days. Notably, Ethereum’s price has surged past $3,900, reflecting the market’s optimism. Amid this, market experts predict a massive influx of institutional investments into Ethereum ETFs, potentially reaching $500 million in the first week post-approval.

Institutional Investment To Put $500M Into Ethereum ETFs

Institutional investors are reportedly ready to inject $500 million into US Spot Ethereum ETFs upon SEC approval. According to a report from DL News, this prediction comes from OKX, a leading crypto exchange, which highlighted the importance of this potential approval.

The report said that Lennix Lai, OKX’s global chief commercial officer, emphasized the significance of Ethereum trading under a traditional framework. Considering that, he believes that it could trigger the next wave of institutional demand.

Meanwhile, the SEC’s recent moves suggest a softening stance towards Ethereum ETFs, raising hopes for approval. Ethereum has seen significant gains this week, with major financial institutions like BlackRock, Invesco Galaxy, Fidelity, and Franklin Templeton eagerly awaiting the SEC’s decision. Notably, VanEck, positioned first in line, anticipates a fair decision process, expecting any approval to extend to other applicants to maintain regulatory neutrality.

Also Read: Coinbase Unveil New Cryptos On Perpetual Market, Price Rally Ahead?

What’s Next?

The approval of U.S. Bitcoin ETFs in January sparked a massive rally in the crypto market, with trading volumes exceeding $1.5 billion. Analysts expect a similar response for Ethereum ETFs. Bernstein analysts predict that Ether’s price could surge to $6,600 following ETF approval.

On the other hand, Jean-Baptiste Graftieaux, CEO of Bitstamp, noted that an Ethereum ETF would be a significant milestone. In addition, it would make it easy and cheaper for retail traders to gain exposure to Ethereum, as compared to Bitcoin ETFs.

Meanwhile, amid this, QCP Capital, in a recent report, echoed the bullish sentiment, predicting that Ethereum’s price could exceed $6,000 post-ETF approval. Meanwhile, according to a recent report, the SEC has initiated discussions over the S-1 Registration filings from key ETF issuers, indicating progress toward a decision.

As of writing, the Ethereum price was up 5.41% and exchanged hands at $3,882.80, after touching a 24-hour high of $3,943.55 recently. The second-largest crypto by market cap added over 20% over the last 30 days while noting a weekly gain of nearly 30%.

Also Read: Toncoin Price Soars 3% Amid Telegram’s New Currency Announcement, Here’s All

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