Besides the significant importance for institutions, the approval of spot ETFs on major cryptocurrencies has the potential to attract a new wave of retail investors to Web3, according to insights shared by a prominent investor. Drawing parallels to the 2017 crypto boom that introduced blockchain assets to a wider audience, there is a belief that the approval of these ETFs could have a similar impact on the retail investor community.
Arthur Cheong, the CIO and co-founder of DeFiance Capital, emphasized the potential excitement among retail investors upon the approval of exchange-traded products on spot Ethereum (ETH). With the recent approval of 19b-4s (preliminary) forms for U.S. spot ETH ETFs, Cheong highlighted the historical influence of Ethereum in attracting newcomers to the crypto space.
Reflecting on the surge of interest in cryptocurrency back in 2017, Cheong mentioned how narratives around Ethereum and XRP enticed many retail investors to hop on the crypto bandwagon. Despite the evolution of technology and Ethereum over the years, its position as a key player in the Web3 ecosystem remains strong.
Noting that over 70% of spot Bitcoin ETF positions are held by retail investors, Cheong underlined the potential impact of Ethereum spot ETFs on the retail audience. As the approval of Bitcoin spot ETFs earlier this year indicated, there is a consensus among stakeholders that aggressive promotion will be crucial in driving the adoption of Ethereum ETFs among retail investors.
In light of the recent approval of 19b-4s requests for Ether ETFs by the U.S. SEC, the focus now shifts to awaiting the authorization of the essential S-1s forms. Despite this milestone, the price of Ether failed to reclaim the $4,000 mark, showing a relatively muted response to the approval news.
Following the approval, Ether’s price experienced a slight dip but has since stabilized around $3,743 on major exchanges. With a modest 0.89% increase in the last 24 hours, Ether’s performance is slightly below the market’s benchmark of 1.9%. As the Ethereum community eagerly awaits further developments in the ETF space, the future outlook for retail interest in Ethereum remains a topic of significant interest in the crypto industry.
