One analyst recently claimed that the launch of Ethereum ETFs (Exchange Traded Funds) next month is “certainly possible”. This news has attracted a great deal of attention in the cryptocurrency world, as it could mark an important turning point for Ethereum adoption.
The launch process
Ethereum ETFs have received approval from their 19b-4 filings, allowing them to be listed on their respective exchanges. However, applicants must first obtain approved S-1 registration statements to start trading. According to Bloomberg ETF analyst James Seyffart, S-1 approvals could arrive in “a couple of weeks”. However, he also noted that it could take longer, as the process typically takes up to five months.
Outlook for the future
The outlook for the future of Ethereum ETFs is very promising. According to Seyffart, Ethereum ETFs could see 20% of the flows that Bitcoin ETFs have seen, while Bloomberg ETF analyst Eric Balchunas estimated that this could be in the 10-15% range. According to Farside Investors, Bitcoin ETFs have already recorded $13.3 billion in net flows since their launch around four and a half months ago. Capturing 20% of this flow could see Ethereum ETFs record a total of $2.66 billion over the same period.
Implications for the industry
The implications for the industry are significant. According to Farside Investors, Bitcoin ETFs have already recorded $13.3 billion in net flows since their launch some four and a half months ago. Capturing 20% of this flow could see Ethereum ETFs record a total of $2.66 billion over the same period. However, some worry that the Ethereum ETF market could see considerable flows out of the Ethereum Grayscale trust, similar to the flows seen with the same company’s Bitcoin investment product. There are more than $11.3 billion locked up in the Grayscale Ethereum trust, according to data from Arkham Intelligence.
