Traders are anxiously awaiting Securities and Exchange Commission approval for the first spot ether ETFs after spot bitcoin ETFs debuted at the beginning of 2024. Jared Blikre breaks down the state of the crypto market and how ether ETFs could affect its trajectory.
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This post was written by Melanie Riehl
Video Transcript
Traders anxiously awaiting on sec approval for the first spot, Ether Ether ETF S which could come in weeks or even days for more.
Let’s bring in our own Jared B who’s been keeping close tabs on the movements here.
Hey, Jared.
That’s right.
That’s right.
Brad Crypto itself has been under pressure recently with both Bitcoin and Ether down more than 20% from recent highs.
But there’s excitement in crypto land over a new batch of ETF that could launch as soon as next week to the spot.
Bitcoin ETF S that listed in January spot E three ts from Blackrock fidelity.
Bit bit wise, you know the names, they’ve been busy updating their S ones at the SEC to bring more liquidity to the crypto market.
And if you’re scratching your head wondering, I thought we already had Ether ETS.
Oh, you’re correct.
The securities watchdog already approved several ETF S in October last year that are based on futures and that’s a critical difference because it can be more difficult for these futures based ETF S to track the underlying crypto prices.
And that’s why in January this year there was so much excitement over the spot Bitcoin ETS which the SEC had resisted for so long.
In fact, the timeline on bringing crypto products to the masses through ETS has a long and storied history that begins far before the pandemic.
Remember the Winklevoss twins?
They tried to get a spot.
Bitcoin ETF approved way back in 2013 only to have it finally rejected in 2017.
But the first crypto efs would not launch until October of 2021.
And those are the type that are based on futures.
The issue at the SEC was Gary Getler himself who mowed down spot crypto applications until until the SEC lost a key court battle with gray scale investments.
That battle was over the right to convert grey scales G BT C Exchange traded Note, which could only be sold under limitations into an exchange traded fund that could be bought by any member of the public after the FTX bankruptcy, nearly closed the lid on the entire crypto industry in 2022 the gray scale court victory lifted spirits as a promise of a spot.
Bitcoin.
A TF finally came into sight.
And when they finally listed in January of this year, investors bought them with size.
The ishares Bitcoin Trust I bid has ranked in $18.1 billion and that’s almost twice the flows that Fidel Fidelity offering bought.
In fact, IB is the fourth biggest ETF winner of the year in the US of all all ETS.
It’s also notable that the gray gray scale Bitcoin Trust G BT C has seen outflows of $18.7 billion which is nearly the reverse of what black black rocks I bet was taking in.
And the reason in part has to do with the 1.5% management fee that gray skill still takes, which has to compete with zero fees from some other offerings.
It’s also worth mentioning because we can see a similar dynamic out here where we might see rotation out of gray scales ethe fund in favor of the lower cost options.
And that could all start as soon as next week, all of the spot E three TF managers, they’re dotting their I’s, they’re crossing their TS and anecdotally the comments they’ve been getting from the SEC.
They are next to nothing.
So it seems that we are close and the effect that all of this might have on the price of Bitcoin in either, is it going to affect prices at all?
Well, it’s worth remembering that Bitcoin saw a huge price bump from excitement over the spot ETF S. But when launch day came, there was a price drop, quickly, prices rallied to fresh all time highs.
And that’s in part because there was so much attention on these ether ETF S. So we’ll have to see what the future brings here, but it looks like next week we’re going to get some more uh crypto options to put crypto in people’s portfolios in 401.
Ks Brad Jared tracking all of the asset types surrounding the crypto landscape.
Jared.
Appreciate it.