SEC Approval of Ethereum ETFs to Unlock $9B in ETH Next Week

Jul 13, 2024, 02:11 AM

The approval and imminent launch of spot Ethereum (ETH) ETFs by the SEC is set to significantly impact the Ethereum market. The ETFs, expected to launch within the next week, are projected to unlock $9 billion worth of ETH, currently held in Grayscale's Ethereum Trust. This could lead to both short-term selling pressure and a mid-to-long-term bullish outlook. Kraken's top strategist, Thomas Perfumo, anticipates the ETFs could generate $1 billion in monthly inflows, potentially lifting the entire crypto market. Ethereum's price has already seen a spike, trading at $3,155, with a 27% increase in trading volume over the last 24 hours. Issuers of the ETFs have filed updated S-1 drafts, and the final regulatory approval is expected imminently. Notably, 40% of Ethereum's supply remains locked, and there was a 22% spike following the SEC's nod. The SEC is expected to provide final comments by early next week.