Key Points
- US-based Ethereum ETFs are expected to begin trading today.
- Predictions see ETH ETFs attracting up to $4 billion in inflows in 2025.
The SEC has officially approved the S-1 applications of US Ethereum ETFs and trading is expected to debut today, July 23.
The approval offers Americans access to the second major digital asset via easy-to-trade vehicles. The decision comes following weeks of editing the registration statements from the ETH ETF issuers.
According to official reports, the US SEC allowed registration forms for the following issuers:
- 21Shares
- Bitwise
- BlackRock
- Fidelity
- Franklin Templeton
- VanEck
- Invesco Galaxy
- Grayscale
Here is the table of Ethereum ETFs set for launch, as noted by Thomas Fahrer, co-founder of Apollo Sats:
An Important Milestone for Crypto and US Investors
Ophelia Snyder, co-founder and president of 21Shares said that the launch of 21Shares Core Ethereum ETF (CETH) marks an important milestone for the company and the US investors as well.
The approval represents more proof that crypto is a legit asset class and it’s here to stay, according to her statement.
The ETH ETF issuers in the US received the SEC’s approval for their 19b-4 forms back in May, but before launch, they still needed their registration statements to go effective.
The crypto products approval was unexpected, judging by the lack of engagement between the SEC and the products’ issuers. However, during the week leading up to the deadlines, the agency seemingly had a change of heart and began letting exchanges know that they would approve the ETH ETFs.
Ethereum ETF Predictions
Market maker Wintermute sees ETH ETFs collecting up to $4 billion in the next year, a number which is slightly below other analysts’ predicitons seeing inflows between $4.5 billion and $6.5 billion.
The company sees Ethereum‘s price gaining as much as 24% over the next 12 months, a surge triggered by the influxes in the crypto products.
At the moment of writing this article, ETH is trading above $3,450.
Bloomberg’s Eric Balchunas said that ETH ETFs may get 10% to 15% of the assets that Bitcoin ETFs received, putting them at $5 to $8 billion in inflows in the first couple of years since their launch.
Nate Geraci, president of The ETF Store, said that the current spot Ethereum market is less than a third of the size of the Bitcoin market, and the demand for ETH ETFs will also be a third of what we’ve seen from Bitcoin ETFs.
Bitwise to Donate 10% of Profits to Ethereum Open-Source Protocol
Matt Hougan, chief investment officer at Bitwise said that we have now fully entered the ETF era of crypto. According to him, investors can now access more than 70% of the liquid crypto asset market via low-cost ETPs.
Bitwise shared a post via X, introducing ETHW, the Bitwise Ethereum ETF.
They noted that the fund invests directly in ETH, and the management fee will be 0.20% (0% for the first six months/$500 million).
Bitwise also posted that they will donate 10% of the profits of their ETH ETF to Ethereum open-source protocol development.
According to Bloomberg’s Balchunas, Ethereum ETFs will go live today, at 9:30 am New Jersey time.
