CBOE Gives Official Launch Date for Spot Ethereum ETF
Five Ethereum exchange-traded funds (ETF) will begin trading on the Chicago Board Options Exchange on July 23, “pending regulatory effectiveness,” CBOE announced on July 19.
On May 23, the United States Securities and Exchange Commission (SEC) approved rule changes allowing the listing of multiple Spot Ether (ETH) ETFs. However, before the new products could start trading, the regulator still had to sign off on each of the funders' S-1 registration statements.
The five Ethereum ETFs set to begin trading are 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEek Ethereum ETF and Franklin Ethereum ETF.
In an effort to gain early market advantage, nearly all ETH ETF issuers have announced plans to temporarily waive or discount fees to compete for market share after their products begin trading. Industry analysts told Cointelegraph that the Ether ETF could attract billions in net revenue in the months after its launch.
RELATED: BlackRock Sets Ether ETF Fees at 0.25% in Rush of S-1 Filings
Ethereum supply problem coming?
Increased demand from institutions looking to fund their transactions with Ether could create a supply crunch. Ethereum's exchange reserve, a metric that tracks the amount of ether available for purchase on cryptocurrency exchanges, is at a multi-year low.
A recent Caico report suggested that Ether's 1% market depth could lead to low liquidity and increased price volatility, sending Ether's price higher against higher demand and potentially outperforming Bitcoin (BTC) in percentage terms.
Institutional analyst Tom Dunleavy believes inflows into Ethereum ETFs could reach $10 billion this year and see capital flows of up to $1 billion per month. In a recent statement, the asset manager told Cointelegraph, “I expect a very positive price impact, sending us to a new all-time high in early Q4.”
Bitwise's Chief Investment Officer Matt Hougan shared a similar sentiment, explaining that Bitcoin owners weren't the same way that Ethereum shareholders were considering selling their assets. The Bitwise executive noted that 28% of Ether's supply is in order and the move from exchanges to cold storage forms is another way Ether owners expect future price appreciation.
Magazine: Rethinking Ethereum: Blockchain Innovation or Dangerous House of Cards?
Update (July 19, 11:50 PM UTC): This article has been updated to show that four more spot Ether ETFs will start trading on the same day.
