CBOE to Launch Five Ethereum ETFs on July 23

The Chicago Board Options Exchange (CBOE) will initiate trading of five spot Ethereum exchange-traded funds (ETFs) on July 23. This development follows the U.S. Securities and Exchange Commission’s (SEC) rule amendment last May, which allowed the listing of such funds. However, final approval depends on the regulator accepting each fund issuer’s S-1 registration statements.

The ETFs to watch are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. Each aims to gain an early market lead by temporarily reducing fees to attract investors.

Market analysts project that these Ether ETFs could usher in billions in new investments in the coming months. Institutional investors’ high interest in incorporating Ether into their portfolios could strain supplies.

According to a recent report by Kaiko, Ethereum’s exchange reserve has dipped to multi-year lows, suggesting possible increased price volatility and substantial gains for Ether compared to Bitcoin.

Industry expert Tom Dunleavy estimates potential inflows into Ethereum ETFs could hit $10 billion this year, potentially spiking Ether prices to new heights by the fourth quarter. Meanwhile, Matt Hougan, Bitwise’s Chief Investment Officer, notes a significant portion of Ether’s supply is locked up by stakers, showing a strong belief in Ether’s future value appreciation among holders.

According to Bloomberg ETF analyst Eric Balchunas, the approval of Ethereum ETFs may have been driven more by political dynamics than by financial metrics alone. The current political environment and responses from the cryptocurrency sector likely influenced the SEC’s decision.

Conversely, Brian Kelly of BKCM Digital Asset Fund speculates on CNBC’s ‘Fast Money’ that Solana might follow Bitcoin and Ethereum as the next cryptocurrency to feature in a U.S. spot ETF, hinting at evolving trends in the cryptocurrency ETF landscape.

Over the past 24 hours, Ethereum has witnessed a modest increase in its value, climbing by 2.64% to reach $3,492.34. This upward movement is part of a broader trend observed on the cryptocurrency’s price chart, where the green line indicates positive momentum amidst a volatile market.

Ethereum’s market capitalization has also risen by 2.45%, now at approximately $419.87 billion, securing its position as the second-largest cryptocurrency by market cap. Despite a slight decrease in 24-hour trading volume by 0.86%, Ethereum maintains a strong market presence with a total of $15.28 billion worth of ETH traded.