(MENAFN- B2Press) The exchange-traded fund (ETF) trend based on crypto assets, which started with bitcoin at the beginning of 2024, continued with Ethereum and Solana. Cryptocurrency markets focused on the final approval decision expected to come from the US Securities and Exchange Commission for the spot Ethereum ETF in July.
TURKEY - Exchange-traded funds indexed to the price of cryptocurrencies have been one of the most talked about topics of the cryptocurrency ecosystem since 2023. The US Securities and Exchange Commission (SEC), which approved spot Bitcoin ETFs at the beginning of 2024, gave the first approval for Ethereum, the world's second most valuable cryptocurrency, in mid-May. While the SEC's final approval is required for exchange-traded funds linked to the Ethereum price to start trading on the US stock exchange, estimates have increased both on the amount of investment that spot Ethereum ETFs can attract and that the final approval may come in July.
Europe's leading cryptocurrency exchange WhiteBIT, which launched its Turkish application named WhiteBIT TR in March 2024 and started its official operations in Turkey, shared its evaluations on spot Ethereum ETFs on its education platform.
It will bring a revival in the market Spot Bitcoin ETFs have been an important milestone in terms of the acceptance of crypto assets in the traditional US investment ecosystem known as Wall Street. While hopes for exchange-traded funds indexed to the Ethereum price were fading, the SEC gave the first approval for companies that applied in mid-May with a surprise development. Although SEC Chairman Gary Gensler, known for his criticism of crypto and especially Ethereum, pointed to the end of summer for the final approval, the developments in the last week of June strengthened the predictions that the approval could come in July. On the other hand, first VanEck and then Ark 21's application for the Solana ETF raised hopes even more.
In the evaluation made by WhiteBIT TR, the official crypto partner of Trabzonspor, it was reminded that spot Bitcoin ETFs offer a new way to invest in crypto assets for many Wall Street players, from hedge funds to traditional investment companies and banks, and it was estimated that the spot Ethereum ETF approval will also bring a revival in the market.
15 billion dollar inflow expected in 18 months US-based digital asset management platforms have also started to make predictions about the spot Ethereum ETF and the impact of the approval of this investment vehicle on the Ethereum price. According to estimates made in mid-May, a potential approval could lead to a 160% increase in the Ethereum price, while Steno Research predicted that the Ethereum price could reach at least $ 6,500 by the end of 2025. Galaxy's research expects a net inflow of $5 billion to spot Ethereum ETFs in the first five months, while other estimates suggest that 18-month net inflows could reach $15 billion.
In the WhiteBIT TR assessment, which reminded that some traditional banks such as JPMorgan said that spot Ethereum ETFs would not attract as much interest as Bitcoin, it was stated that spot ETFs create an alternative tool for people or organisations unfamiliar with crypto asset markets to diversify their portfolios, and that being able to invest in crypto assets in the comfort of fund management means less complexity for investors.
'Investing in cryptocurrencies itself is more advantageous than crypto ETFs' In the evaluation of WhiteBIT TR, which officially started to operate in Turkey with its Turkish application launched in March 2024 and became one of Turkey's most downloaded cryptocurrency exchange applications in the App Store, headings such as narrow trading window, high commissions, adhering to the strategy of the ETF manager were counted as the disadvantages of exchange traded funds. While it was emphasised that actually owning crypto is more suitable for the decentralised nature of crypto, it was shared that investing in cryptocurrencies itself is more advantageous, especially for crypto investors. The evaluation ended with information that every investor can open a WhiteBIT account in seconds and invest in Ethereum in Turkish lira.
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