Ethereum ETFs Set to Break Records After Historic Approval

The Ethereum ETF could become one of the most successful funds of all time

The 29th of August, 2023 marked a historic milestone for the crypto industry. The Court of Appeals for the District of Columbia ruled that the US Securities and Exchange Commission (SEC) had wrongly rejected Grayscale Investments' application to approve a Bitcoin spot ETF. This landmark decision paved the way for ten Bitcoin ETFs to be launched on January 10, 2024. With an overall valuation now exceeding $60 billion, these Bitcoin ETFs became the most successful ETF launch ever.

On July 22, 2024, another chapter was added to America's crypto ETF success story when Ether (ETH), with a market capitalization of around $400 billion as the second-largest cryptocurrency, was approved as an underlying asset for ETFs. Just one day later, nine Ethereum ETFs began trading—a development few experts could have predicted just a year ago.

This information comes from FAZ - Frankfurter Allgemeine Zeitung in their article titled "Der Ethereum-ETF könnte einer der erfolgreichsten Fonds aller Zeiten werden" available at faz.net/pro/d-economy/transformation/der-ethereum-etf-koennte-einer-der-erfolgreichsten-fonds-aller-zeiten-werden.

Ethereum News: Scarcer than ever! When will ETH explode?

Cryptocurrencies corrected significantly in the last 24 hours, and when we talk about a crypto crash, this primarily applies to Bitcoin. The world's most valuable cryptocurrency fell by four percent, dropping back to USD 66,500; the technical outlook remains constructive.

Ethereum's relative strength is evidenced by moderate pullbacks, with a loss of only about one percent compared to the previous day. Experts increasingly point to a potential supply shock for Ether as a driving force for future price increases due to the significant proportion of staked ETH coins—over twenty-eight percent are now staked while only ten percent remain available.

According to finanzen.net's article "Ethereum News: Scarcer than ever! When will ETH explode?" published at finanzen.net/nachricht/devisen/ethereum-news-knapper-denn-je-wann-explodiert-eth, it is predicted that this scarcity combined with increasing demand could lead to massive price surges.

Ethereum: Is the horror about to end?

The price of Ethereum saw some recovery over the weekend and started strong this week partly due to bullish statements by Donald Trump at a recent Bitcoin conference held in Nashville, according to DER AKTIONÄR’s report "Ethereum: Is the horror about to end?" published on their website under www.deraktionaer.de/artikel/aktien/ethereum-hat-der-schrecken-bald-ein-Ende.

A significant factor contributing to this positive trend is also surprisingly attributed to Grayscale despite its ETHE fund experiencing outflows amounting to USD 356 million last Friday alone, while other funds like BlackRock recorded inflows totaling approximately USD 87 million, thereby balancing out net daily changes across various platforms involved within similar investment vehicles targeting Ether assets specifically designed through diversified portfolios aimed primarily at long-term growth potentials.

Sources: