Key takeaways:
The Chicago Board Options Exchange will list five spot Ethereum ETFs for trading on July 23 “pending regulatory effectiveness,” the CBOE stated.
There may be a shortage of Ether due to increased demand from institutions wishing to add it to their exchange-traded funds.
The Chicago Board Options Exchange will list five spot Ethereum Exchange Traded Funds (ETFs) for trading on July 23 “pending regulatory effectiveness,” the CBOE stated on July 19.
The US Securities and Exchange Commission (SEC) authorized rule modifications on May 23 that allow the listing of multiple spot Ether ETFs. The regulator still needed to approve the S-1 registration statements for each fund issuer before the new products could go on sale.
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 are scheduled to open for trade.
Nearly every issuer of an ETH ETF has stated plans to temporarily eliminate or decrease fees in order to fight for market share once the products begin trading. This is an attempt to get an early market edge.
There may be a shortage of Ether due to increased demand from institutions wishing to add it to their exchange-traded funds. The quantity of Ether that may be bought on crypto exchanges is measured by the Ethereum Exchange Reserve, which is at multi-year lows right now.
In addition to discussing Ether’s 1% market depth, a recent Kaiko analysis made the argument that reduced liquidity may lead to higher price volatility, which would push Ether’s price higher in response to growing demand and possibly exceed Bitcoin in terms of percentage growth.
Institutional researcher Tom Dunleavy predicts that this year’s inflows into Ethereum ETFs might reach $10 billion, with capital transfers occurring as often as once a month.
Similar sentiments were expressed by Bitwise’s chief investment officer, Matt Hougan, who clarified that Ethereum stakeholders were not as determined to sell their holdings as Bitcoin holders were.
An additional indication that Ether holders anticipate future price rise is the Bitwise executive’s allegation that 28% of Ether’s supply has already been sequestered, along with a surge in withdrawals from exchanges to colder forms of storage.
