Bitcoin spot ETFs debuted six months ago, and now Ethereum—the second-largest cryptocurrency—is following suit with its own spot ETFs. On Monday, July 22 (ET), the U.S. Securities and Exchange Commission (SEC) approved applications from multiple firms to list and trade Ethereum spot ETFs, marking a pivotal moment for crypto investors.
Key Details of the Approval
- Effective Date: SEC filings confirm ETFs will go live Tuesday, July 23, at 9:30 AM ET.
- Issuers: Major players like BlackRock, Fidelity, VanEck, and Bitwise are among the approved issuers.
- Fee Structure: Most ETFs feature competitive fees (0.19%–0.25%), while Grayscale maintains a 2.5% fee (with a temporary waiver).
👉 Explore Ethereum investment opportunities
Market Reactions and Predictions
- Price Volatility: Ethereum surged to $3,560 before settling at $3,490 (+0.2%) post-approval, then dipped 2% in Asian trading hours.
Analyst Insights:
- Bitwise CTO Matt Hougan forecasts $15B inflows in 18 months.
- Steno Research projects $15B–$20B first-year inflows, mirroring Bitcoin ETF trends.
Why This Matters
Ethereum ETFs could trigger a supply crunch, amplifying price sensitivity to demand. With locked ETH unavailable for ETF backing, analysts see this as a potential "tipping point" for crypto valuations.
FAQs
Q: Which firms are launching Ethereum spot ETFs?
A: BlackRock, Fidelity, VanEck, Bitwise, and others; Grayscale will convert its existing trust.
Q: How do fees compare to Bitcoin ETFs?
A: More competitive (0.19%–0.25%) vs. Bitcoin’s initial 0.2%–0.8%.
Q: What’s the long-term outlook?
A: Analysts predict $15B–$20B inflows within a year, driven by institutional demand.
👉 Stay ahead in crypto markets
Final Notes
As Ethereum ETFs join Bitcoin’s success, investors gain regulated exposure to crypto’s "blue-chip" assets. Watch for Tuesday’s launch—it could reshape the digital asset landscape.