It’s been about a month since spot bitcoin ETFs debuted on U.S. exchanges. Some cryptocurrency enthusiasts are already asking, “What’s next?” Answering that question isn’t easy. But many crypto ETF investors hope ethereum is next in line to be granted spot ETF status by the SEC.
Hope may be enough to put more eyeballs on the VanEck Ethereum Strategy ETF (EFUT). The fund debuted last October as one of the first futures-based ETFs providing exposure to ethereum. That is the second-largest digital currency by market value behind only bitcoin.
As was seen during the journey to make spot bitcoin ETFs a reality, existing futures funds benefit from positive headlines. That could be the case for EFUT if positive news percolates for ethereum ETFs.
Spot Bitcoin ETFs Provide Template
EFUT is a futures-based product. That’s relevant amid spot ether ETF speculation for a simple reason. As bitcoin proved, buyers stepped into the digital currency as it became clearer the SEC would approve spot bitcoin funds. It’s possible a similar scenario will play out with ether.
“Analysts believe the odds are high that several Ethereum ETFs will be approved this year. This forecast is based on the similar approval pattern as Bitcoin ETFs and the removal of Ethereum from the SEC’s list of unregistered securities,” noted XS.com analyst Antonio Ernesto Di Giacomo. “This expectation has generated a climate of optimism among cryptocurrency investors, who expect greater diversification and accessibility in the financial market.”
Analysts view the concept of spot ether ETFs as another watershed moment for the intersection of crypto and ETFs. And the potential for significant price appreciation by ether on spot ETF news would likely benefit EFUT. Such upside isn’t guaranteed, but bitcoin already proved it’s possible.
“It is expected that Ethereum’s price could reach all-time highs again, reaching the $4,800.00 per ETH area following the ETF’s approval,” added Di Giacomo. “Analysts suggest that Ethereum may not follow the same volatility patterns as Bitcoin, which could contribute to greater stability in its value. In addition, the potential approval of the Ethereum ETF is expected to have a significant bullish impact on the market, especially since Ethereum’s Grayscale trust has a relatively small stake, meaning its liquidation would not exert significant selling pressure on ETH.”
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