Spot Ethereum ETFs Are Here: Wall Street Expects ETH Price to Touch $8,000?

After years of regulatory hurdles and numerous amended filings, spot Ethereum ETFs are finally arriving. For the first time, shares of publicly traded Ethereum (ETH) ETFs will be listed alongside giants like Apple Inc. (AAPL) and SPDR S&P 500 ETF Trust (SPY) on some of the United States’ most popular brokerage platforms.

• Spot Ethereum ETFs are set to debut on major U.S. exchanges on July 23, 2024.

• Nine ETFs with different fee structures will be available through major brokerage platforms.

• Staking isn't included in the initial offerings.

This landmark event is a significant milestone for cryptocurrency markets, offering a new opportunity for millions of US institutional and retail investors.

The Chicago Board Options Exchange (CBOE) has confirmed July 23 as the launch date for the five ETFs assigned to trade on its platform:

• 21Shares Core Ethereum ETF

• Fidelity Ethereum Fund

• Invesco Galaxy Ethereum ETF

• VanEck Ethereum ETF

• Franklin Ethereum ETF

A comparison table of the first 9 spot ETH ETFs | Source: Cointelegraph 

Read more: Best Ethereum ETFs to Watch in 2024

The remaining four ETFs are expected to trade on either Nasdaq or New York Stock Exchange (NYSE) Arca around the same date.

The short answer is almost any major brokerage platform. Each of the spot ETH ETFs set to list in late July has obtained regulatory approval to trade on a major U.S. exchange such as Nasdaq, NYSE Arca, or CBOE BZX. Investors will be able to trade these ETFs through well-known brokerages like Fidelity, E*TRADE, Robinhood, Charles Schwab, and TD Ameritrade.

Nine spot Ether ETFs are set to begin trading. Despite their similarities in structure—each holding spot ETH with a qualified custodian and benefiting from standard investor protections—the deciding factor for many investors will be fees.

For eight of the nine ETFs, management fees range from 0.15% to 0.25%. However, the Grayscale Ethereum Trust (ETHE), which started trading under a different fund structure in 2017, charges a significantly higher fee of 2.5%.

Most Ethereum ETFs are temporarily waiving or discounting fees to attract investors. The Grayscale Ethereum Mini Trust (ETH) leads the pack with the lowest management fees of 0.15%, waived entirely for the first six months or until the fund reaches $2 billion in assets under management (AUM).

Franklin Templeton’s Franklin Ethereum ETF (EZET) offers a competitive 0.19% fee, waived through January 2025 or until the fund clears $10 billion in AUM.

The short answer here is "No." Staking involves depositing ETH to a validator node on Ethereum’s Beacon Chain, earning rewards but risking forfeited collateral if the validator misbehaves. While staking significantly boosts returns, regulatory concerns around liquidity have kept it off the table for now.

Issuers like Fidelity, BlackRock, and Franklin Templeton have sought approval to add staking to spot ETH ETFs, but the SEC has denied these requests. Staked ETH typically takes days to withdraw, creating potential issues for promptly redeeming ETF shares.

Cboe, the Chicago Board Options Exchange, will list five new Ether ETFs on July 23, pending regulatory approval. The ETFs from 21Shares, Fidelity, Franklin, Invesco Galaxy, and VanEck will trade on the BZX Exchange. The SEC approved Form 19b-4 filings for these ETFs in May, but the funds still require S-1 registration statement approval to launch.

Analysts predict initial volatility post-ETP launch but expect a positive overall trend. The introduction of spot Ethereum ETFs is anticipated to significantly impact Ether prices, potentially driving ETH above $5,000 by year-end.

Wall Street’s Ether Price Prediction of $8,000

Wall Street has varying outlooks on how Ethereum will move once ETFs launch. Standard Chartered has projected that Ether will hit $8,000 by the end of the year, driven by ETF inflows estimated between $15 billion to $45 billion within 12 months.

JPMorgan and Citi predict more modest inflows compared to Bitcoin's ETFs, citing Bitcoin's first-mover advantage and Ether’s unique functionalities that aren't accessible through ETFs, like staking.

However, firms like Steno Research and Galaxy Digital anticipate strong inflows, suggesting Ether could achieve significant gains even without matching Bitcoin’s ETF flows.

Read more: Ethereum Spot ETF Likely Starts Trading on July 23: Price Prediction

ETH/USDT price chart | Source: KuCoin 

As Ethereum prepares for the ETF launch, its price has been experiencing notable movements. On July 21, Ethereum's price peaked at $3,529, consolidating within a narrow channel between $3,450 and $3,550 over the weekend. This stability indicates a strong psychological support level around $3,400.

However, bear traders have mounted $704 million in short contracts, anticipating a "sell-the-news" scenario following the ETF launch. This high volume of short positions has contributed to Ethereum's price stagnation, contrasting with Bitcoin's recent gains.

Technical indicators suggest a cautious outlook. The Bollinger Bands show a contracting range, indicating lower volatility and potential consolidation. The upper band is at $3,631.12, and the lower band is at $2,852.28, outlining critical resistance and support levels. Bulls need to maintain the $3,400 support level to prevent further declines. If this support fails, the next key support zone lies around the lower Bollinger Band at $2,852.

The RSI (Relative Strength Index) reads 58.34, close to overbought conditions, suggesting limited upside before a potential correction for the short term.

The debut of spot Ethereum ETFs marks a significant moment for the crypto industry. While initial market reactions may vary, the long-term outlook suggests that these ETFs could attract substantial new investments in Ether. Investors should remain aware of the potential risks and conduct thorough research before making any investment decisions.

Read more: What’s the Ethereum Price Prediction After SEC Approves Spot Ether ETFs?