Trading ETFs on the cryptocurrency Ether on the stock exchange. Source: gopixa - stock.adobe.com

Key Takeaways:

U.S. regulators have approved spot ETFs for Ethereum’s ether (ETH), set to begin trading soon.
The approval follows a successful precedent set by Bitcoin (BTC) ETFs, which attracted significant investments.
Analysts predict ether ETFs could attract $15 billion to $20 billion in inflows within the first year, potentially boosting ether’s price to $6,500.

U.S. regulators have approved spot exchange-traded funds (ETFs) holding Ethereum’s ether (ETH), allowing trading to begin as early as Tuesday.

This approval, following a lengthy SEC review, mirrors the successful launch of bitcoin (BTC) ETFs in January, which attracted substantial investments.

What are we expecting today for the Ethereum ETFs?

We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs' prospectuses have gone "effective". Likely after or around market close. Here are the race entrants: pic.twitter.com/AkBxEjBRvv
— James Seyffart (@JSeyff) July 22, 2024

The ether ETFs are expected to make Ethereum more accessible to traditional investors via brokerage accounts.

Initial uncertainties were resolved in late May when the SEC approved a key filing, leading to this final decision.

Experts like Matt Hougan of Bitwise and Kyle DaCruz of VanEck emphasized the significance, comparing Bitcoin to digital gold and Ethereum to an open-source App Store.

Bitcoin ETFs saw a massive price surge post-approval, and analysts predict ether ETFs could attract $15 billion to $20 billion in inflows within the first year, potentially pushing ether’s price to $6,500.

However, Ethereum lacks Bitcoin’s “first-mover advantage” and compelling narrative, which might affect its market impact.