CBOE Confirms Ethereum ETF Launch Date

Five spot Ethereum exchange-traded funds (ETFs) will start trading on the Chicago Board Options Exchange on July 23, “pending regulatory effectiveness,” according to a CBOE announcement on July 19.

On May 23, the United States Securities and Exchange Commission (SEC) approved rule changes allowing the listing of several spot Ether ETFs.

However, the regulator still needed to approve each fund issuer’s S-1 registration statements before the new products could begin trading.

The five spot Ether ETFs set to launch are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.

To gain an early market advantage, nearly all ETH ETF issuers have announced plans to temporarily waive or discount fees to compete for market share once trading begins

Industry analysts have indicated to Cointelegraph that Ether ETFs could attract billions in net inflows in the months following their launch.

Increased demand from institutions looking to fill their ETFs with Ether could lead to a supply crunch.

The Ethereum Exchange Reserve, which tracks the amount of Ether available for purchase on cryptocurrency exchanges, is at multi-year lows.

A recent Kaiko report highlighted Ether’s 1% market depth and suggested that lower liquidity could lead to increased price volatility.

This could drive the price of Ether higher with increased demand, potentially outperforming Bitcoin in percentage terms.

Institutional analyst Tom Dunleavy predicts that inflows into Ethereum ETFs could reach $10 billion this year, with as much as $1 billion in capital flows per month.

He told Cointelegraph, “I expect a very positive price impact, sending us to new all-time highs by early Q4.”

Matt Hougan, Chief Investment Officer of Bitwise, expressed similar views, noting that Ethereum stakers were less inclined to sell their assets compared to Bitcoin holders.

Hougan mentioned that 28% of Ether’s supply was already sequestered and pointed to increased withdrawals from exchanges to colder forms of storage as further evidence that Ether holders anticipate future price appreciation.

Sources:

https://cointelegraph.com/news/cboe-official-launch-date-spot-ethereum-etf

https://www.cboe.com/us/equities/notices/new_listings/details/?etf=true&firm_name=Franklin+Templeton&first_trade_dt=2024-07-23&ipo=true&symbols=EZET