The Chicago Board Options Exchange (Cboe) has announced that it will list five new ETH ETFs on its exchange, so we sat down with Konstantin Shulga, CEO and Co-founder of Finery Markets who has offered his analysis.
CBOE, the Chicago Board Options Exchange, has announced that it will list five new ETH ETFs on its exchange potentially starting July 23, pending regulatory effectiveness. How do you expect the market to react to the listings?
The adoption rate of digital assets and institutional involvement has accelerated far faster than anticipated at the beginning of the year. Market sentiment has turned bullish, with strong performance observed across exchanges, OTC markets, and other sectors.
For example, Ethereum trading volumes rose by 32% in the first half of 2024 compared to the same period in 2023 in the OTC market. Consequently, we can reasonably expect further market strengthening in response to the swift approval of the ETH ETF. However, it is essential to recognize that beyond the initial hype, business routines prevail.
The full impact of ETF approvals on the market may not be fully realized until six to nine months later, as it typically takes this time for innovative products to be fully integrated into financial players’ product portfolios and gain widespread adoption.
The ETFs follow in the footsteps of eleven Bitcoin ETFS which have accumulated over $54 billion in assets under management since launching in January, and Bitcoin has soared 47% this year can you see a similar trajectory with ETH over the next few months after the listings this week?
We saw a significant BTC rally following the launch of BTC ETFs. Anticipation for ETH, the second-largest digital asset, is high, especially in the current bullish market. Research indicates Ethereum’s higher sensitivity to global ETP flows compared to Bitcoin. However, we should remain patient and account for volatility and potentially inflated expectations.
The key point is that the approval marks a significant shift in regulatory sentiment, signaling the irreversible institutionalization of crypto. Institutions are entering the crypto space, creating vast opportunities to capitalize on this trend.