Ethereum

Bitcoin

James

Investors’ eyes are fixed on spot Ethereum ETFs and how products could perform in the opening months after Bitcoin funds were hugely successful. 
On Tuesday, the first nine U.S. spot Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) ETFs opened for trading on national exchanges following the Securities and Exchange Commission’s (SEC) final greenlight.&nbsp;Wall Street players and retail investors can now access exposure to crypto’s second-largest decentralized token, ETH, via a regulated institutional wrapper.&nbsp; 
According to Bloomberg’s James Seyffart, the funds <a href="https://x.com/JSeyff/status/1815739982729900195" target="_blank" rel="">debuted</a> with nearly $10.3 billion in assets under management (AUM). Most of that money is domiciled in two Grayscale products, one of which is the long-standing Grayscale Ethereum Trust (ETHE).&nbsp; 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Here are the starting asset levels for the Ethereum ETFs launching today. The whole complex starts trading with just shy of $10.3 billion (pretty much all from <a href="https://twitter.com/search?q=%24ETHE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$ETHE</a>'s assets) <a href="https://t.co/MAfjObFX4a" target="_blank" rel="">pic.twitter.com/MAfjObFX4a</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1815739982729900195?ref_src=twsrc%5Etfw" target="_blank" rel="">July 23, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
As titans like BlackRock, Fidelity, and VanEck jockey for dominance in the spot ETH ETF market, Alluvial CEO and co-founder Mara Schmiedt told crypto.news to anticipate over “$20 billion in the initial months post-launch”.&nbsp; 
 You might also like: <a href="https://crypto.news/ethereum-price-etf-approval-launch/"> Ethereum price could see sell-the-news retreat following ETF approval </a> 
Capital flocking into spot Ethereum products will also likely catapult ETH’s price well above its previous peak of $4,878. As of writing, Ether changed hands for $3,400, about 28% below its all-time high (ATH).&nbsp; 
Schmiedt stated, “With roughly 38% of the current ETH supply locked in staking, bridges, and DeFi, and another 10% sitting on retail exchanges, ETF-driven ETH inflows could have a significant upward price impact.” 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14286636"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/ETHUSDT_2024-07-23_15-03-16.png.webp"> 
 <img loading="lazy" decoding="async" width="1113" height="653" src="https://crypto.news/app/uploads/2024/07/ETHUSDT_2024-07-23_15-03-16.png" alt="Ethereum"> 
 </picture> 
 <figcaption class="wp-element-caption">
 ETH daily price chart | Source: <a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">crypto.news</a>
 </figcaption>
</figure> 
Alluvial’s CEO predicted that the forthcoming supply shock caused by Ether ETF buying, coupled with spot Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) ETF success and growing demand for cryptocurrencies, paints a stronger bull thesis for the rest of this cycle.&nbsp; 
Staking was noticeably absent from trading spot Ethereum ETFs, but Schmiedt believes the development may present opportunities rather than problems.&nbsp; 
“An interesting and important difference between BTC and ETH is that staking on Ethereum introduces a native rate of return, currently around 3.3%, that may prove compelling to investors seeking fixed income-like alternatives to equities, enabling portfolio diversification and inflation hedging,” Schmiedt explained to crypto.news in a private note.&nbsp; 
 Read more: <a href="https://crypto.news/ethereum-etfs-potential-inflows-and-ethereum-price-impact-analysis/"> Ethereum ETFs: Potential inflows and Ethereum price impact analysis </a>

Alluvial CEO: Ethereum ETF inflows could surpass $20b

crypto.news

Other articles published on Jul 23, 2024

BlackRock Leads Spot Bitcoin ETFs Inflow To Highest Level In Almost 2 Months

JasmyCoin Price Prediction: Is a $1 Moonshot Realistic?

Bitcoin Targets $67,000 Again as Decline Halts

'Dogecoin Killer' Shiba Inu Burn Rate Spikes 1,947% As Marketing Lead Predicts 'Altcoin Season'

Top 10 Cryptos Trade in Red Zone: Will Solana (SOL) Price Reverse the Trend & Reclaim $180?

Shiba Shootout Nears $750,000 In Presale, Rides Crypto Market Momentum

Join our free newsletter for daily crypto updates!