In a remarkable milestone for the crypto industry, U.S. regulators have granted final approval for spot exchange-traded funds that hold Ethereum (ETH).
The decision marks the end of a years-long process to obtain ethereum ETFs approved by the Securities and Exchange Commission (SEC), which followed the regulator’s approval of Bitcoin (BTC) ETFs in January.
The anticipation and subsequent approval of these ETFs created a ripple effect, boosting market sentiment and driving considerable capital inflows.
According to the most recent CoinShares report, the outlook for Ethereum seems to have reversed, seeing a further USD $45 million of inflows last week, surpassing Solana as the altcoin with the largest inflows year-to-date (YTD) at $103 million. Solana also received inflows of $9.6 million last week, but it now trails Ethereum by $71 million year-to-date.
Big day as Ethereum ETFs trading set to begin, stablecoins soar
Spot ETH exchange-traded funds will begin trading today, July 23. The crypto community is enthusiastic that the move might broaden the investor base for Ethereum, the second-largest cryptocurrency by market capitalization. Other Ether ETFs monitor futures contracts, but these are the first to track spot ETH.
Notably, the approval of Ethereum ETFs has sparked significant movements across various assets. While Ethereum has been in the spotlight, stablecoins have also experienced a notable surge.
It looks like it’s not only a big day for ETH…but also for stablecoins!
The total stablecoin market cap has finally started to break $160b after 3 months of remaining relatively flat, highlighting increasing demand and growing confidence in these assets
Bullish. pic.twitter.com/Zv8qe6RTJ7
— Nansen 🧭 (@nansen_ai) July 23, 2024
According to on-chain analytics firm Nansen, Tuesday is not just a big day for Ethereum as ETFs begin trading, but also for stablecoins.
Nansen reported that the total stablecoin market cap has finally started to break $160 billion after three months of remaining relatively flat, indicating rising demand and confidence in these assets. Nansen shared a chart depicting the growth in the stablecoin market cap as the first set of Ethereum ETFs go live for trading.
