Lennix Lai, OKX's global chief commercial officer, stated that the approval of the Ethereum spot exchange-traded funds (ETFs) could see institutional investors invest $500 million.
Lennix Lai, OKX's global chief commercial officer, stated that the approval of the Ethereum spot exchange-traded funds (ETFs) could see institutional investors invest $500 million into the ETFs, according to analysis conducted by crypto exchange OKX. He emphasized that it could be just as important, if not more, than the approval of a Bitcoin ETF. Lai believes that if Ethereum can be traded within a traditional framework, it could spark a new wave of institutional demand for the cryptocurrency.
The SEC approved eight spot Ethereum ETFs on Thursday, the final deadline for VanEck’s Ethereum spot ETF application. However, following the approval, ETH price remained relatively flat, gaining just 0.80%. In the past week, Ethereum's price has surged by 24%, driving growth within the proof-of-stake sector. Lido Staked Ether, for example, has seen a 27% increase in the past seven days, according to CoinMarketCap.
The approved funds include the Grayscale Ethereum Trust, Bitwise Ethereum ETF, iShares Ethereum Trust, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF, Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund, and Franklin Ethereum ETF.
While VanEck's head of digital assets research believes the SEC will respect the application queue, any approval is likely to be extended to other applicants to avoid the perception of the agency as a kingmaker. The approval of an Ethereum ETF could further stimulate market enthusiasm. Analysts at Bernstein predict that if the funds are approved, Ether could surge to $6,600.
However, the introduction of ETFs may have implications for crypto exchanges such as Coinbase and Kraken. While ETFs enable traders to access the asset class without relying on digital wallets or native exchanges, going mainstream could have various effects. Lai, however, downplayed the long-term risk for exchanges and suggested that ETFs would serve as a gateway for newcomers to enter the crypto market, ultimately expanding its size and participation.
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