On May 23rd, 2024, the US Securities and Exchange Commission approved a spot Ethereum ETF. 

With this recent news update, Ethereum ETFs have become an easier option for investors to gain exposure to ETH without directly buying and storing the cryptocurrency. This can attract more investors, including bigger institutions, enhancing liquidity and cash inflow, thus a more stable and higher price. Regulatory approval also boosts the credibility and legitimacy of the cryptocurrency market, further making ETH a safe choice of investment.

For investors, ETH ETFs offer reduced risks related to security and transaction handling while providing an easy way to invest in a given sector. The transparency and regulatory acceptance of cryptocurrency ETFs can further increase trust and stability in the cryptocurrency market, which would reflect on ETH’s price in the long term.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.