Following the news of the possible launch of the first ethereum Spot Exchange Traded Funds (ETFs)), optimism among eth institutional investors has seen a significant rise, outpacing that of retail investors towards the cryptoasset. The positive sentiment of institutional investors can be explained by a number of factors, including increased trading volumes, which indicate a strong belief in the asset’s long-term potential.
Greater institutional optimism ahead of ethereum spot ETF approval
On Tuesday, trading and analyst platform TOBTC, x.com/_TOBTC/status/1813203621619900669″ target=”_blank” rel=”noopener nofollow”>reported Positive development on the x platform (formerly twitter). According to the trading platform, in anticipation of the possible introduction of the first eth spot ETFs, institutional investors are more optimistic about ethereum than individual investors.
Anticipation towards ethereum spot ETFs appears to be generating positive sentiment among these major financial players as they view the launch of the products as a crucial milestone for eth and the broader cryptocurrency market. This strong interest from major players is interpreted as a bullish indicator due to its potential to boost the price of eth given its substantial pool of funds.
Eugene Cheung, director of institutions in BybitHe noted that following the announcement of the ETF, institutional exposure to eth doubled. As a result of this increased institutional interest, the head of the institution believes that the price of the crypto asset will double to over $6,800 by the end of 2025, driven by growing expectations and interest in eth spot ETFs.
Institutional investors may be betting more on fund approval because they anticipate more direct and secure access to ethereum. However, retail investors appear to be more cautious, perhaps as a result of recent market fluctuations and regulatory hurdles.
While eth spot ETFs might initially attract less money than bitcoin eth spot ETFs, TOBTC believes they could bring greater regulatory certainty and eventually boost the performance of ethereum Better than bitcoin in the long run.
eth spot ETFs to launch next week
The growing interest among institutional eth investors can be solely attributed to the recent news about the possible launch of eth spot ETF next week, particularly on July 23.
Since the sudden authorization from the US Securities and Exchange Commission (SEC) in May, the process of issuing eth spot ETFs has been significantly delayed. However, recent developments suggest a change in sentiment, as the products could be approved in as little as a week.
Eric Balchunas, a senior analyst at Bloomberg Intelligence, x.com/EricBalchunas/status/1812930206933655759″ target=”_blank” rel=”noopener nofollow”>reported On Monday, the regulatory watchdog called for asset managers to submit their final versions of the registration statements for the ethereum spot ETFs by today.
Specifically, asset managers will have to return their S-1 application and request entry into force on the Monday following the closing, in order to be able to launch the funds on Tuesday, July 23. “Of course, this is provided that no unforeseeable last-minute problems arise,” Balchunas added.
Featured image from Adobe Stock, chart from Tradingview.com