• The launch of an Ethereum ETF is contingent on the approval of a Bitcoin ETF, with over 12 Bitcoin ETF applications pending.
• Firms are hesitant to launch Ethereum ETFs due to initial low trading volumes, while advocacy for products like the EXP ETF indicates a potential influx of institutional investors into crypto markets.

The approval of cryptocurrency exchange-traded funds (ETFs) remains a focal point in the rapidly evolving landscape of digital assets. Notably, the path to an Ethereum ETF appears to be intricately tied to the fate of Bitcoin ETFs. As of now, the prevailing sentiment suggests that no Ethereum ETF will be approved until a Bitcoin ETF secures regulatory clearance.

The U.S. Securities and Exchange Commission (SEC) currently has over 10 pending ETF applications for Bitcoin, with various financial institutions and investment firms seeking approval to launch these investment vehicles. To be precise, there are 12 spot-bitcoin ETF applications including Grayscale, 21Shares & Ark, BlackRock, Bitwise, VanEck, Wisdomtree, Invesco & Galaxy, Fidelity, Valkyrie, Global X, Hashdex and Franklin.

Simultaneously, there are also numerous Ethereum ETF applications awaiting regulatory decisions, reflecting the intense interest and competition within the crypto ETF space. In a recent tweet by James Seyffart mentioned the SEC’s delay in the Invesco Galaxy Ethereum ETF application, stating that it was ‘completely expected’ and providing insights into the regulatory landscape.

This tweet aligns with the overall anticipation and ongoing speculation within the crypto community regarding ETF approvals.

The Dynamics of Emerging Crypto ETFs: A Market Overview

In the past, Volatility Shares was a pioneer in applying for an Ethereum (ETH) futures-based ETF. Although the SEC had not approved previous applications, the landscape changed when other companies began to launch their own ether futures ETFs in October.

Despite receiving SEC approval, Barton’s team decided against launching their ether ETF due to its slow start. The trading volumes stayed below $2 million on the first day and lacked momentum during the subsequent week.

We applied first but missed out on the first-mover advantage when all applications were simultaneously approved,

Earlier this month, CNF strongly advocated for the launch of the EXP ETF, emphasizing its potential to attract institutional investors to the XRP market. This move, they argued, would significantly boost liquidity, targeting investors who manage billions in assets. Meanwhile, the XRP price demonstrated resilience, showing a slight decline of 0.27% over the past week, but a notable increase of 3.95% in the last 24 hours.

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