- With the approval of spot ETFs on major cryptocurrencies, a new wave of retail investors is expected to enter the Web3 space.
- Veteran investor Arthur Cheong believes that the retail community will be particularly excited about the approval of exchange-traded products on spot Ethereum (ETH).
- Cheong highlights that over 70% of spot Bitcoin ETF positions are held by retail investors, suggesting a similar trend for Ethereum.
Discover how the approval of Ethereum spot ETFs could revolutionize retail investment in the crypto market.
Crypto retail holders will be excited by Ether spot ETF, veteran investor Arthur Cheong says
Arthur Cheong, the CIO and co-founder of Asian VC firm DeFiance Capital, asserts that the retail community will be thrilled by the approval of exchange-traded products on spot Ethereum (ETH). Cheong shared his views on social media following the approval of 19b-4s (preliminary) forms for U.S. spot ETH ETFs.
Cheong recalls the 2017 crypto boom, where Ethereum (ETH) and XRP attracted a significant number of new investors. He believes that the approval of Ethereum spot ETFs will similarly excite retail investors, drawing parallels to the earlier surge in interest.
He notes, “More than 70% of spot BTC ETF are held by retail, and when I was retail the first crypto I bought was ETH. Lots of normie like XRP because of the fintech narrative as well. Most 2017 cohort joined crypto because of Ethereum as well. Can’t imagine retail won’t get excited by ETH; the decentralized technology layer powering Web 3.0 economy.”
Cheong emphasizes that the technology and Ethereum itself have evolved significantly over the past seven years, yet its status remains undisputed in the Web3 ecosystem. He predicts that the operators of potential Ethereum spot ETFs will aggressively promote these new products to retail investors.
Ethereum (ETH) price fails to reconquer $4,000
Despite the excitement surrounding the approval of Ether ETFs, the price of Ethereum (ETH) has struggled to regain the $4,000 mark. On May 23, 2024, the U.S. SEC approved 19b-4s requests for Ether ETFs’ launch, but the crucial S-1s forms are still pending authorization.
Following the approval, Ethereum’s price dropped from $3,830 to $3,670. As of the latest update, Ether is trading at $3,743 on major spot exchanges, showing a modest 0.89% increase in the last 24 hours, which is below the market’s benchmark of 1.9%.
Conclusion
The approval of Ethereum spot ETFs marks a significant milestone for the crypto market, potentially ushering in a new wave of retail investors. While the immediate price reaction has been underwhelming, the long-term implications for Ethereum and the broader Web3 ecosystem are substantial. Investors and market participants should closely monitor further developments and regulatory approvals to gauge the full impact of these financial products.
