<img src="https://cryptoslate.com/wp-content/uploads/2024/05/ethereum-etf-wallst.jpg” />
Kaiko Research said in eth-headed-for-a-bull-run”>may 27th Those one-time ethereum ETF approvals are a positive sign for the digital asset's long-term growth despite potential near-term headwinds.
According to Kaiko's report, the approval has removed much of the regulatory uncertainty around ethereum's classification as an asset class.
Will Cai, head of indices at Kaiko, said the approval means the SEC is implicitly treating eth as a commodity rather than a security. He added:
“(The approvals have) significant and likely positive ramifications for how all similar tokens will be regulated in the US…”
Contrary to previous expectations, the SEC approved the ETFs' 19b-4 filings on May 23. The agency must still approve the S-1 orders. ethereum Spot ETFs are expected to launch in the coming weeks or months.
Grayscale can see outputs
Despite his optimism around the regulatory changes, Kaiko believes that Grayscale's ETHE fund will likely experience outflows, which could put selling pressure on eth as new funds begin trading.
Wrote:
“The overall market impact of ETHE redemptions is still uncertain.”
Grayscale's ETHE currently has $11 billion in assets under management (AUM). Kaiko anticipates the fund will experience $110 million of average daily outflows after it begins trading as an ETF.
By comparison, Grayscale's bitcoin fund GBTC saw outflows worth $6.5 billion or 23% of its assets under management during its first month of trading as an ETF.
Additionally, inflows from other ETFs offset or exceeded outflows from GBTC in late January.
Hong Kong ETF
Kaiko also drew attention to Hong Kong eth ETFs. The company said the “lackluster” launches from foreign funds point to greater uncertainty about how ETHE redemptions will impact the market.
based on separate data Since Farside, Hong Kong spot eth ETFs have seen net outflows of $4.4 million since their launch in early May.
Finally, Kaiko commented on centralized exchange data. eth's market depth is close to $226 million, or about 42% below its pre-FTX average levels. eth is only 40% concentrated on US exchanges, down from 50% at the beginning of 2023.
