CBOE Set to Introduce Five Spot Ethereum ETFs on July 23
The Ethereum ETF is making headlines again as the Chicago Board Options Exchange (CBOE) prepares to introduce five spot Ether ETFs starting July 23. This development follows the SEC’s approval of rule changes on May 23 that cleared the way for these ETFs.
However, each fund issuer’s S-1 registration statement still awaits final SEC approval. Many ETF issuers plan to offer free or low-cost services initially to attract investors.
The forthcoming Ethereum ETFs feature the VanEck Ethereum ETF, 21Shares Core Ethereum ETF, Invesco Galaxy Ethereum Fund, Fidelity Ethereum Fund, and Franklin Ethereum ETF.
Bitwise CIO Predicts Ethereum ETF Will Outperform Bitcoin ETF
Matt Hougan, Chief Investment Officer at Bitwise, anticipates that spot Ethereum ETFs will have a more significant effect on ETH’s price compared to Bitcoin ETFs’ impact on BTC. He points to three key factors:
Ethereum’s inflation rate is nearly zero due to high usage of Ethereum-based applications.
ETH stakers incur minimal direct costs compared to Bitcoin miners who must sell BTC to cover operational expenses.
Approximately 28% of all ETH is staked and locked, reducing the circulating supply.
Hougan predicts that ETH could exceed $5,000 by the end of 2024. The spot Ether ETFs are set to launch on July 23.
Will Ethereum ETF Propel ETH to $5,000?
Previously, experts speculated that a Bitcoin ETF would drive BTC to $100,000, but it fell short of this target. After the approval of the spot Bitcoin ETF, BTC was trading around $47,641, then corrected to $38,000, before reaching a high of $73,750.07—a gain of over 90%.
If Ethereum follows a similar trajectory, it could potentially surpass $5,000. Currently, Ethereum is trading at $3,502 with a slight intraday decline of 0.10%. Over the past week, ETH surged nearly 11.68%, and it has grown by 42.66% in the last six months, indicating a bullish trend.
According to Tradingview’s technical summary, out of 26 indicators, 3 suggest a sell, 9 are neutral, and 14 are buy signals, reinforcing a positive outlook for ETH.
Conclusion
The introduction of five spot Ethereum ETFs on July 23 is anticipated to have a major impact on ETH’s price, possibly driving it to exceed $5,000 by the close of 2024. According to Matt Hougan from Bitwise, Ethereum’s minimal inflation rate, low staking fees, and large amount of staked assets are crucial elements. While there may be some initial fluctuations, the general forecast for ETH is positive, supported by recent price increases and promising technical signals.
