ETFs
ETH Is Low Interest? Here’s How Ethereum Spot ETFs Can Change the Game
- Grayscale’s Latest Report Suggests US Voters More Likely to Buy ETH Following ETF Approval
- As ETH’s value has skyrocketed on the charts, its network growth has plummeted
The recent market decline has affected a multitude of cryptocurrencies over the past few days. Needless to say, Ethereum [ETH] was no exception, with its price struggling to break the $3,000 mark at the time of writing.
Will Ethereum Finally See Green?
However, there may be some hope for Ethereum maximalists, despite the altcoin’s price drop. investigation Grayscale painted an optimistic picture of Ethereum’s future.
According to the same study, when the highly anticipated Ethereum Spot ETF launches, nearly a quarter of potential U.S. voters will be more likely to invest in the altcoin. This increase in interest would also be part of the overall trend toward cryptocurrency adoption.
The survey also found that nearly half of voters, 47% to be precise, now plan to include cryptocurrencies in their investment portfolios – a significant increase from 40% just six months ago. The widespread interest of people in adding cryptocurrencies to their portfolios could further help ETH in the long run.
Similar to the launch of the Bitcoin ETF, an Ethereum ETF would provide new investors with a familiar and regulated way to enter the market. This influx of capital, particularly from institutions, could drive up the price of Ethereum due to increased demand. This is what happened with Bitcoin, where the ETF approval coincided with a significant price increase.
A U.S.-approved Ethereum ETF would be a major vote of confidence from regulators, potentially easing institutional concerns about the cryptocurrency’s legitimacy.
How is ETH doing?
At press time, ETH was trading at $2,987.46 after rising 4.19% over the past 24 hours. Network growth for ETH has declined significantly over the period. This indicates that despite the low prices, most new investors have not been willing to buy ETH.
Additionally, the velocity around the token has also decreased, implying a reduced frequency of trading for ETH.
Read Ethereum [ETH] Price forecast 2024-2025
It is therefore worth anticipating what the final launch of Ethereum Spot ETFs will mean for the altcoin’s price in the future.
Source: Santiment
On the other side of the world, it looks like Hong Kong could soon be home to Ethereum staking ETFs, and in just 6 months. That’s according to Vivien Wong of Hashkey Capital. In fact, Wong also claims that local regulators are now talking to industry insiders about the proposal.