Ethereum ETF To Attract Only 15% Of US Spot Bitcoin ETF Influx: 10X Research

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As a researcher with extensive experience in the crypto market, I’ve closely monitored the recent developments surrounding the Ethereum price and the impending approval of the U.S. Spot Ethereum ETF. The modest 1% uptick we witnessed today is an optimistic sign for Ethereum investors, fueled by the anticipation that the Ether ETF could start trading as early as next week.

As an analyst, I’ve observed a subtle 1% surge in Ethereum‘s price today. This upward trend can be attributed to the mounting optimism surrounding the imminent U.S. Securities and Exchange Commission (SEC) approval of the Spot Ethereum Exchange-Traded Fund (ETF). Market insiders are keeping a close eye on developments, with next week marked as a potential timeframe for the Ether ETF’s launch. July 2 is particularly noteworthy as a pivotal date in this unfolding narrative.

Based on new findings from 10X Research, the Ethereum ETF may draw relatively little interest compared to U.S.-listed Spot Bitcoin ETFs.

Ethereum ETF To Record Minimal Inflow As Compared To BTC ETF

Markus Thielen, the CEO of 10X Research, has shared insightful perspectives on the possible market consequences following the anticipated approval of the U.S. Spot Ethereum ETF. In a recent social media update, Thielen discussed the impending approval and projected market reactions.

Based on Thielen’s analysis, an Ethereum ETF from VanEck could be launched imminently, perhaps as early as July 2. This prediction follows a trend set by Bitcoin ETFs, with VanEck filing an Form 8-A just prior to the launch of their successful Bitcoin ETF. Subsequently, the Bitcoin ETF amassed over $600 million in assets under management (AUM).

According to Thielen’s estimation, the Ethereum ETF is expected to draw in around 15-20% of the investment that Bitcoin ETFs have attracted, equating to roughly $2.8 billion. Furthermore, Thielen has increased his prediction for the Ethereum ETF’s launch timing based on VanEck’s seven-day head start in filing for approval, suggesting a potential launch as early as July 2023.

Regarding the anticipated inflow for an Ethereum ETF in the U.S., Thielen stated that it is generally believed that this new ETF will attract around 15-20% of the investment that Bitcoin ETFs have garnered. This equates to approximately $2.8 billion. It’s worth mentioning that this amount is roughly on par with the expansion in Ethereum perpetual futures open interest since May 2020.

Thielen remarked that the market could be preparing for the debut of a U.S. Spot Ethereum ETF based on current trends.

SEC’s Role and Market Readiness

According to Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), the review process for the Spot Ethereum Exchange-Traded Funds (ETFs) is moving forward favorably. While Gensler’s comments did not guarantee approval, they have instilled hope that the SEC will soon give its nod to these ETFs.

As a researcher examining this topic, I’ve noticed that the timeline has sparked much debate, particularly following the Securities and Exchange Commission (SEC) approval of 19b-4 filings from notable financial entities such as VanEck, BlackRock, Fidelity, and Grayscale.

Although these approvals have been granted, real trading has not started yet. The issuers still need to make necessary amendments to their S-1 registration statements and receive final approval from the SEC. It’s important to note that Bloomberg analyst Eric Balchunas has revised the anticipated approval date for the Spot Ethereum ETF to July 2, taking into account the ongoing regulatory procedures.

At the moment of composition, Ethereum’s price increased by 1.11%, reaching a value of $3,387.68. However, its trading volume decreased by 44% compared to the previous day, amounting to $12.06 billion. Additionally, Ethereum’s price peaked at $3,424.58 during this period. Moreover, Ethereum Futures Open Interest grew by 0.90%, totaling $15.08 billion, and ETH Options Open Interest experienced a significant surge of 1.63%, reaching $6.3 billion.

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2024-06-26 12:58