Ethereum Spot ETFs to Attract $4 Billion as SEC Approves S-1 Applications

• The SEC approved Ethereum spot ETFs, with trading beginning on July 23, anticipating a $4 billion capital influx.
• Bitwise will donate 10% of Ethereum spot ETF profits to open-source developers, supporting the Ethereum network.
• Grayscale moved $1.1 billion in ETH to Coinbase Institutional, aiming to attract investors with lower fees for its Ethereum Mini Trust.

The SEC has granted approval for the S-1 applications of Ethereum spot ETFs, marking a significant milestone in the cryptocurrency market. Trading is set to commence at 9:30 AM on July 23. Wintermute anticipates the spot Ethereum ETF to attract up to $4 billion in capital inflows over the next year, predicting a 24% increase in ETH prices within the same period.

In a notable development, Bitwise announced a commitment to donate 10% of the profits from the Ethereum spot ETF to Ethereum open-source developers. This initiative aims to support the continuous improvement and innovation within the Ethereum network. The SEC’s approval of the S-1 registration statements makes the Ethereum spot ETF the second digital asset ETF to be launched in the US. The SEC’s decision, visible on the asset managers’ websites, followed the approval of the 19b-4 filings on May 23.

Following the SEC’s final approval, significant movements have been observed in the market. According to Whale Alert, the Grayscale Ethereum Trust transferred approximately $1.1 billion in ETH to Coinbase Institutional. This transfer aligns with Grayscale’s strategy to shift 10% of its holdings to the Ethereum Mini Trust, which features a reduced fee structure of 0.15%, the lowest among ETH ETFs. Grayscale aims to mitigate potential outflows and attract investors by offering competitive fees.

Whale 0xbec has been actively transferring ETH to Binance over the past five days. The whale moved 11,965 ETH at an average price of $3,457 per ETH, totaling $41.4 million. This whale’s trading strategy has yielded an estimated profit of $29.9 million, reflecting a 14.7% gain. Detailed analysis reveals the whale’s total purchases amount to 67,018 ETH, valued at $203.352 million, with an average purchase price of $3,034 per ETH. On the sell side, the whale has offloaded 15,566 ETH, valued at $53.529 million, at an average selling price of $3,439 per ETH.

The price of Ethereum (ETH) is $3,445.82 at press time, with a 24-hour trading volume of $18,509,735,982. This represents a -0.63% price decline in the last 24 hours but a 1.76% increase over the past week. Ethereum’s market cap stands at $414,070,523,903, with a circulating supply of 120 million ETH. Despite a 1.70% price increase in the last seven days, Ethereum is slightly underperforming compared to the global cryptocurrency market, which has risen by 1.90%.