The launch of an ETF based on the spot price of Ethereum may potentially have a positive impact on altcoins. This view was expressed by Darius Tabai, CEO of DEX Vertex Protocol, in a conversation with The Block.
“Given the commotion and lack of clarity surrounding the launch of spot exchange-traded funds based on Ethereum, it seems the market is not fully appreciating the impact of the ETF, and we could easily see a rise of more than 25%,” the expert suggested.
He anticipates a potential effect on altcoins if the upward movement of the second-largest cryptocurrency by market capitalization proves sustainable. In his view, the situation will contrast with the launch of spot Bitcoin ETFs.
On July 18, the U.S. Securities and Exchange Commission approved applications for the launch of a mini-ETF based on Ethereum from Grayscale and a spot exchange-traded fund from ProShares. Trading of these instruments is expected to begin on July 23, by which date other issuers of spot ETH-ETFs will have fully complied with regulatory requirements.
Earlier, QCP Capital predicted that ether could rise to $4800 following the approval of ETH-ETFs. Experts believe that demand amounting to 10-20% of the inflow into Bitcoin funds will trigger positive movement.
In July, Binance CEO Richard Teng stated that the products will ensure a stable and significant capital inflow, but only over time.
