According to multiple insiders, the SEC plans to approve Ethereum ETF for official trading in the US next Tuesday.
Analysts pointed out that due to the low liquidity of Ethereum, once institutional demand increases significantly, the price of Ethereum will immediately rise, even surpassing Bitcoin.
There is another bullish news in the cryptos industry. According to two people familiar with the matter, the US Securities and Exchange Commission notified the potential issuer of Ethereum ETF on Monday that the fund is expected to start trading in the US market next Tuesday.
One of the insiders said that SEC officials told an issuer that there were no further suggestions from regulators on the recently submitted S-1 document, and the final version needs to be submitted before Wednesday. Ethereum ETF may be listed on US exchanges on July 23.
The second insider also said that Ethereum ETF will be listed after the closing bell next Monday and will begin trading on the following Tuesday.
After the SEC approved the key documents for the listing of Ethereum ETF at the end of May, the launch of the fund is expected to have entered the final stage. The approval of the S-1 documents by regulators is the final step.
The next capital darling?
Since the approval of the spot Bitcoin ETF in the US in January this year, many financial institutions have started to compete fiercely for the qualification to issue Ethereum ETF. The fund allows investors to bet on the price trend of Ether without directly holding it, reducing trading difficulty.
The impressive performance of Bitcoin ETF this year is also an important reference for the investment market to bet on Ethereum ETF. As of July 12, Bitcoin ETF has accumulated a net inflow of 15.8 billion US dollars, and the highest single-day net inflow record is 1.05 billion US dollars. This makes financial institutions including BlackRock and Fidelity work hard to persuade the SEC to launch Ethereum ETF as soon as possible.
According to the latest report, analysts believe that after the long-awaited Ethereum ETF is launched in the US, the performance of Ether may surpass that of Bitcoin.
It pointed out that due to the low market liquidity of Ether and almost all Ether reserves are supported by Ethereum exchanges, which is at its lowest level in years, institutional demand will immediately affect the price of Ether and make it rise immediately when it explodes.
Institutional investor Tom Dunleavy predicts that Ethereum ETF will grow rapidly at a rate of about 1 billion US dollars per month, and eventually reach a scale of 10 billion US dollars.
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