Crypto Spot ETFs According to a report by Reuters, the market is not reacting positively. As we get closer to the approval of spot Ethereum (ETH) Exchange Traded Funds (ETFs). Which is expected to be launched on July 4th. This permission has been highly awaited, according to the information provided by CoinMarketCap. When this article was written, Bitcoin (BTC) and significant cryptocurrencies exhibited red candlesticks on their daily charts. Nevertheless, price action is not the only metric that depicts the level of interest investors show.
Surge in institutional interest for Ethereum
Even if the price of Ethereum (ETH) has been falling for some time now, the Open Interest (OI) in futures contracts on the Chicago Mercantile Exchange (CME) is growing instead. Similar to the tendency observed in Bitcoin before the launch of ETF trading, this trend is also observed in other cryptocurrencies.
On the same topic, Oliver Isaacs, a well-known blockchain influencer, took to X (which was then known as Twitter) and made the following observation: “This surge in Ethereum CME Futures OI suggested rising institutional interest, increased market activity, and a bullish mood toward ETH.”
State Street and Galaxy Digital’s partnership
However, regarding positive news, this is not the only information that keeps investors interested in the company. An announcement made not too long ago by State Street Global Advisors (State Street) and Galaxy Digital revealed. The two companies will collaborate to establish new exchange-traded funds (ETFs) to offer visibility into digital assets.
According to statements made by both companies in separate press releases. These exchange-traded funds (ETFs) will go “beyond” simply spotting Bitcoin ETFs. These statements imply that investors would be able to participate in a more extensive variety of digital assets through these ETFs. According to the research findings, this relationship illustrates the synergy between two big firms. This synergy will offer investors access to the “$2.4 trillion digital asset ecosystem through manager-directed strategies.”
Community reaction
Continuing with the same idea, Mike Novogratz, the founder and chief executive officer of Galaxy Digital, stated that this exemplifies how cryptocurrency is rapidly becoming an asset class accepted by the general public. The fact that State Street has been concentrating on digital assets for more than three decades is the basis for the cryptocurrency community’s excitement over this relationship.
It was the first exchange-traded fund (ETF) listed in the United States in 1993. It currently manages more than $4.3 trillion in assets and is one of the largest ETF providers in the world. Therefore, optimism is well-founded!
Not the first time
This is not the first time that information regarding exchange-traded funds has spread like wildfire, which has surprised me somewhat. Ripple CEO Brad Garlinghouse recently called attention to the likelihood of further exchange-traded funds (ETFs) being launched shortly during a presentation at Consensus 2024.
Consequently, even though it took decades for Bitcoin exchange-traded funds (ETFs) to get clearance. This outcome has opened the way for the general use of cryptocurrencies. The potential for the approval of further ETFs on a broader scale.
