MICA Daily | Bitcoin Spot ETF Passed, Ethereum Market Share Rises Over 22%

The approval of the Bitcoin Spot ETF did not cause a rise in Bitcoin’s price. Instead, investors turned their focus to Ethereum as the next cryptocurrency to qualify for a spot ETF.
Several fund companies have applied for Ethereum Spot ETFs, leading to an increase in Ethereum’s market share by 22.3% and a price rise above $2,600.
If the Ethereum Spot ETF is approved, futures ETFs may face liquidation as fund companies shift their focus to spot trading.
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ETH-7.51%

After the approval of the Bitcoin Spot ETF, the price of Bitcoin did not rise after the positive news. Instead, Ethereum (ETH) became the new focus of the market, as investors believe that Ethereum will be the next cryptocurrency to qualify for a spot ETF. Several fund companies have already applied to the SEC to issue Ethereum Spot ETFs, which has pushed the price of Ethereum above $2,600 and increased its market share by 22.3%.
Currently, there are Ethereum futures ETFs available for trading in the US stock market, with the main liquidity coming from the CME futures exchange. The overall nature of Ethereum ETFs is similar to Bitcoin ETFs. Considering that Ethereum has also been determined by the court as a ‘digital commodity’ rather than a ‘security,’ the possibility of obtaining the next Ethereum Spot ETF qualification is quite high. However, this involves many legal compliance costs, and it still depends on whether the Bitcoin Spot ETF can generate profits for fund companies.
If the Ethereum Spot ETF is approved, the futures ETFs in the market may also face liquidation by fund companies. For example, VanEck has already closed its XBTF futures ETF and fully shifted to HODL, which focuses mainly on spot trading, because the management cost of the latter is much lower than that of futures rollovers and is more in line with the fund company’s strategy of concentrating resources to promote a single ETF.
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This article was first published on Blockcast under the title ‘MICA Daily | Bitcoin Spot ETF Passed, Ethereum Market Share Rises Over 22%’.
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