In recent developments, multiple companies have updated their filings with the U.S. Securities and Exchange Commission (SEC) in anticipation of launching a spot Ethereum ETF by the initial week of July. Markus Thielen, CEO of 10X Research, has indicated that the upcoming Ethereum ETF might capture just 15% of investments compared to existing U.S. spot Bitcoin ETFs.

Implications of Ethereum ETF Launch

Markus Thielen, CEO of 10X Research, has shared insights suggesting that Ethereum (ETH) Exchange-Traded Funds (ETFs) could be approved imminently, potentially debuting as early as the following week. Noteworthy financial firm VanEck is strategically preparing for this pivotal moment. VanEck's CEO recently met with the U.S. Securities and Exchange Commission (SEC) to discuss their ETH ETF proposal. VanEck intends to commence without fees until the fund accumulates $1.5 billion in assets or until the next year, followed by a modest fee of 0.2%.

VanEck has submitted a form 8-A, mirroring the action taken a week before Bitcoin ETFs were launched, signifying readiness for an ETH ETF release by July 2nd. The current assets under management (AUM) for VanEck's Bitcoin ETF stand at $600 million.

Meanwhile, Thielen forecasts that the ETH ETF could attract around 15% to 20% of the investments observed in Bitcoin ETFs, amounting to approximately $2.8 billion in assets. This projection aligns with the surge in ETH futures interest since May 20th, indicating market readiness for ETF approval.

Predicted Inflows for Ethereum ETF

Contrarily, Bitwise Chief Investment Officer Matt Hougan suggests that an Ethereum ETF could draw in $15 billion of net inflows within its initial 18 months. The approval of Ethereum ETFs holds significant implications for the cryptocurrency market as it facilitates traditional investors' access to Ethereum's price without direct ownership of the digital asset. This development is poised to attract a broader range of institutional and retail investors to Ethereum, potentially stimulating market activity and enhancing its popularity.