ETFs
Is It Time to Buy Ether ETFs in Hopes of an Approval Rally?
Following the SEC’s comments on the S-1 forms and requests for resubmission, the launch date of the spot Ether ETFs has potentially been pushed back to mid-July or even late July. This approval will mark a significant milestone in the evolution of the cryptocurrency landscape, affecting the entire cryptocurrency market as well as Ethereum.
According to roundtable host Rob Nelson, quoted on Yahoo Finance, a positive approval from the SEC could pave the way for broader acceptance of digital assets.
Investor confidence is growing
According to a recent study by Cointribune, the popularity of Ether ETFs among Americans continues to grow, as their launch has boosted investments in digital currencies. About 33% of participants have become more receptive to the digital asset since the beginning of 2024, and nearly 47% of participants expect the asset to be part of their portfolio.
Analysts are anticipating a significant inflow of capital, possibly as much as $15 billion in the first few months. Driven by growing interest in emerging technologies and expectations of clear regulation, the future of Ether ETFs looks bright.
Fed Cuts Rates to Improve Ether Outlook
With expectations of a Fed rate cut in late 2024 growing, investors may consider cryptocurrencies as an alternative to the depreciation of the dollar, which moves in the opposite direction of the Fed’s interest rate adjustments. This indicates positive signs for Ether, creating more investment opportunities in digital currencies.
Moreover, any Fed rate cut would boost risk sentiment. Coupled with the approval of spot Ether ETFs, this combination should support the rise in digital asset prices.
Understanding Current Price Fluctuations
Over the past week, Ether has fallen by about 12%. This decline could signal a negative trend in the cryptocurrency market, raising questions about whether the approval of Ether spot ETFs could provide a significant boost.
However, a similar trend was observed for Bitcoin before it got approval for spot ETFs. Bitcoin dropped by about 8.6% a few days before getting approval on January 10, followed by an additional 8.5% drop after the approval. After this drop, the cryptocurrency has since surged by 44% despite the recent fluctuations in the digital asset market.
This trend paints a promising picture for Ether’s future, suggesting potential surges and encouraging prospects in both the short and long term.
Focus on ETFs
Below, we highlight a few ETFs with heavy exposure to Ether, offering investors the opportunity to bolster their portfolios with the cryptocurrency, which has surged about 30% year-to-date. These ETFs offer a way to profit from future market movements as SEC approval becomes imminent.
The story continues
ProShares Ether Strategy ETF (EETH)
The ProShares Ether Strategy ETF uses an active strategy and has accumulated an asset base of $99.4 million. The fund charges an annual fee of 0.95% and has a dividend yield of 10.75%.
The ProShares Ether Strategy ETF has gained 39.58% year-to-date, but has fallen 11.46% over the past three months.
VanEck Ethereum Strategy ETF (EFUT)
The VanEck Ethereum Strategy ETF uses an active strategy and has an asset base of $28.5 million. The fund charges an annual fee of 0.66% and has a dividend yield of 5.13%.
The VanEck Ethereum Strategy ETF has gained 32.65% year-to-date, but has fallen 9.07% over the past three months.
Bitwise Ethereum Strategy ETF (AETH)
The Bitwise Ethereum Strategy ETF uses an active strategy and has an asset base of $12.8 million. The fund charges an annual fee of 0.85% and has a dividend yield of 5.50%.
The Bitwise Ethereum Strategy ETF has gained 36.33% year-to-date, but has fallen 11.33% over the past three months.
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Bitwise Ethereum Strategy ETF (AETH): ETF Research Reports
ProShares Ether Strategy ETF (EETH): ETF Research Reports
VanEck Ethereum Strategy ETF (EFUT): ETF Research Reports