Fintech
SEC Approves First Spot Ethereum ETFs
Major financial institutions such as Grayscale, Fidelity, Invesco, and Bitwise are poised to launch these Ethereum spot ETFs. Unlike futures-based ETFs, spot ETFs directly track the price of Ethereum, offering a more direct investment option. This approval is expected to attract substantial inflows, increasing the attractiveness of investing in Ethereum.
“Some expect a muted response compared to the Bitcoin ETFs“, continues Bekhazi.
However, while Ethereum has a different risk profile than Bitcoin, the Ethereum ETF could have the potential to become a key investment in any portfolio once the SEC and issuers take the time to understand the asset.
“It is fair to say that everyone will be watching the Ethereum ETF and the underlying asset closely to see if it can follow in the footsteps of Bitcoin and break new all-time highs. However, it should also be remembered that market prices have historically corrected after the initial launch of the ETF, which could also be expected following this approval.”
“We’ve already seen how these assets can open up new investment possibilities for a much wider audience, including those who previously didn’t have access to digital asset investment opportunities,” Bekhazi says.
Institutions that have gained exposure to the spot Bitcoin ETF will likely seek to diversify with Ethereal ETF, as it provides another familiar and convenient tool for investing in cryptocurrencies.
“This will not only help fuel inflows into the ETF, but also marks another significant step forward for institutional adoption of cryptocurrencies.”
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