After Bitcoin received ETF-approval back in January 2024, we’ve seen massive inflows of capital. Bitcoin ETFs have become the fastest growing ETFs in history! And this introduction of Bitcoin ETFs has pushed the floodgates wide open for other crypto to make their way onto the stock market in ETF form. In fact, the next crypto ETF listing is coming soon.
And according to $757 billion asset manager – Bernstein – final approval could see this crypto climb 94% higher.
Round Two for Crypto ETFs – Welcome Ethereum ETFs
On 22 May, the Securities and Exchange Commission (SEC) surprised the crypto market when it approved the listing of eight spot price Ethereum ETFs.
The initial applications came from assets managers such as Grayscale, Bitwise, iShares, VanEck, Ark Invest, Invesco, Fidelity, and Franklin Templeton.
Blackrock has also filed an updated application before the end of June.
This announcement marks a pivotal moment in the cryptocurrency market, underscoring a significant shift in the regulatory landscape for crypto in the US.
These Ether ETFs however still need the final approval, before being officially launched. But once approved the Ethereum ETFs will list on the Nasdaq, NYSE, and Chicago Board Options Exchange (CBOE).
Not only did the SEC’s “pre-approval” send Ethereum up 20%…but between 23 May and 2 June, investors withdrew over $3 billion worth of Ethereum from exchanges.
This massive withdrawal signals crypto traders and investors intent to secure their Ethereum in anticipation of the launch of the spot Ether ETFs, which will reduce supply.
A few more wins for Ethereum in June…
Other than the approval of spot Ethereum ETFs…
The SEC dropped its investigation into Ethereum 2.0, implying Ethereum is a commodity…
What does this mean?
Well, in the past, the Ethereum blockchain used an energy-intensive proof of work (PoW) mining method to produce coins. But in 2022, the Ethereum Network switched to the more energy-efficient proof of stake (PoS) method. That transition, known as “The Merge”, reduced the network’s energy consumption by 99.95% and made it deflationary – which meant more Ether was being burned than produced.
The SEC then claimed “The Merge” made the Ether coin and Ethereum-based tokens into commodities. This changed how Ether coins are created and managed.
But after fighting tooth and nail to dub Ethereum a security, the SEC seems to have given up.
And its decision to approve the first Ether ETF filings implies the coin can now be classified as a commodity instead of a security.
This now clears the way for smaller Ethereum-based tokens such as Solana, Avalanche and more to get their own spot price ETFs.
Another major win for Ethereum is crypto-focused Pantera Capital Management expressed interest in buying a $100 million worth of shares in Bitwise Asset Management’s proposed spot Ethereum ETF…
Investors and traders are keeping a close watch on the final approval for spot Ethereum ETFs.
What can we expect if Ethereum ETFs are approved?
Final approval could send Ethereum’s price to $6,600 according to Bernstein Asset Management. That’s a 94% rise from today’s Ethereum prices.
So, if you’re an avid crypto investor or trader, it could be worth your money holding some Ethereum. Want to know which cryptos we believe you should own to profit from the next crypto mega cycle then go here.
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