The Binance CEO said that the Spot ETH ETF could make investing in the digital currency more accessible and attractive to more investors.
The launch of Ethereum exchange-traded funds (ETFs) is getting closer, and many experts are weighing in on its potential impact on ETH price. Richard Teng, the CEO of Binance, expressed doubt about the initial impact.
Teng revealed that Ethereum ETFs might not make an immediate impact but could bring a lot of steady investment over time. He further said that launching these exchange-traded funds is an important step for the Ethereum network and the whole cryptocurrency market.
“The upcoming launch of ETH spot ETF trading in the US marks yet another significant milestone for Ethereum and the broader digital asset market,” he explained.
The Binance CEO said that the Spot ETH ETF could make investing in the digital currency more accessible and attractive to more investors. He further stated that launching these ETFs helps solve concerns about Ethereum’s legitimacy, rules, and security, making it a better investment.
Crypto experts have predicted that a high inflow could follow the ETH ETF launch, as it could go as high as $5 to $10 billion in the first few months, pushing Ethereum price to record highs.
Similarly, Bitwise’s chief investment officer, Matt Hougan, has forecasted that the ETF launch will propel the price of ETH to new heights, surpassing $5000 before the end of the year. However, Teng believes the initial impact may not be that dramatic as it could experience price swings due to several economic factors. He said:
“While we anticipate a steady capital deployment into these ETFs, it is unlikely to be dramatic initially and will fluctuate based on various macroeconomic factors.”
Richard Teng further stated that the liquidity of these ETFs could grow a lot, especially when they become available to big investors who usually invest for the long term, which could eventually propel the price of the coin to spike
The upcoming launch of spot Ethereum ETFs in the United States follows the introduction of spot Bitcoin ETFs earlier this year, which sparked the price of BTC to reach an all-time high of $73,000. Many crypto enthusiasts are expecting ETH to follow a similar path.
Institutions Gear Up for Spot ETH ETF Debut in the US
Spot ether ETFs are expected to launch this month, with projections suggesting July 23rd as the kickoff date. Institutions trying to issue ETH ETF have completed and submitted all the necessary paperwork required for approval, which further solidifies the possibility of it getting launched next week.
Investment institutions, such as BlackRock, Fidelity, 21Shares, Grayscale, Bitwise, and Invesco Galaxy, submitted amended S-1 filings on Wednesday, a necessary document for issuers.
The question for most crypto investors now is: Will the Spot ETH ETF launch mirror the similar bullish pattern that occurred to Bitcoin after its spot BTC ETF listing?
Funds & ETFs, Market News, News
