This is branded content.
Subscribe now for unlimited access.
or signup to continue reading
The U.S. Securities and Exchange Commission (SEC) has given preliminary approval to multiple Ethereum exchange-traded funds (ETFs). This is a big deal for both seasoned investors and newbies.
So, what are spot Ether ETFs?
They're a type of security that tracks Ethereum's price, making it easy to trade Ether without needing a wallet or exchange account. The approval means asset managers like BlackRock, Franklin Templeton, and VanEck can launch Ethereum ETFs.
Investor anticipation of these ETF products has driven Ethereum's price up 6.7 per cent within a 24 hour period A$5180.55.
Market observers believe this is just the start, with projections suggesting Ethereum could target the A$6000 level and pump higher once the ETFs go live.
Why Ethereum?
Ethereum is the second-largest cryptocurrency by market capitalisation and has been a solid player in the crypto market for nine years.
Ethereum's appeal goes beyond its longevity. The network is renowned for its smart contract capabilities and continuous development, making it a foundational asset in the blockchain ecosystem.
Matt Hougan, chief investment officer at Bitwise, speculates that the spot Ether ETFs could attract up to A$22.2 billion (approximately $15B) in inflows in their first 18 months of trading.
This could significantly increase Ethereum's market value and solidify its status as a mainstream investment asset, similar to popular stocks like BHP or Telstra. Co-founder and CEO of HollaEx, a white-label crypto exchange provider, also agrees with the sentiment and strong demand for Ethereum.
While Ethereum is gaining the spotlight, other cryptocurrencies like Solana and Bitcoin offer promising investment opportunities.
Solana is known for its high-speed and low-cost transactions. The blockchain has grown in popularity following an explosion of memecoins. Solana's price is up more than 700 per cent over the last 12 months.
With VanEck also filing for a Solana ETF and all eyes on a potential approval in 2025, the ecosystem continues to expand and drive the market's demand.
Bitcoin's influence on the crypto market
Bitcoin is the first and most popular cryptocurrency that continues to play a pivotal role in the overall market dynamics.
Earlier this month, Standard Chartered Bank's head of forex and digital assets research, Geoffrey Kendrick, projected that Bitcoin could reach a new all-time high in August and potentially surpass A$149,000 in price by the time of the U.S. presidential election in November.
Kendrick expects Trump's return to office to benefit Bitcoin. He predicts Bitcoin's price will reach $150,000 by the end of the year and $200,000 by the end of 2025, which would put its market cap at A$4.4 trillion, similar to Nvidia's recent milestone.
Bitcoin's projected growth could increase interest and investment in other cryptocurrencies, including Ethereum, Solana, and Toncoin.
You can buy Bitcoin, Ethereum, Solana and many other cryptocurrencies from licenced crypto exchanges in Australia, such as CoinJar, Swyftx, and eToro Australia.
This information is general in nature and is for education purposes only. This is not to be taken as financial advice nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.