The final approval of the Ethereum ETF marks the rise of institutional interest. The collaboration between VanEck and Galaxy Digital expands the ETF selection beyond Bitcoin, promoting the adoption of cryptocurrencies.
According to Reuters, the highly anticipated Ethereum (ETH) exchange-traded fund (ETF) is expected to be approved and launched on July 4th, but the market response has been lackluster.
According to CoinMarketCap data, at the time of writing, Bitcoin (BTC) and all major cryptocurrencies showed red candles on the daily chart.
However, price movement is not the only indicator of investor interest.
Institutional interest in Ethereum surges
Despite recent price declines, the ETH CME (Chicago Mercantile Exchange) futures open interest (OI) continues to rise, reflecting a trend observed in BTC before the start of ETF trading.
Renowned blockchain influencer Oliver Isaacs stated on X (formerly known as Twitter), “Don’t be blinded by the slow bleeding market condition, an impulse candle will wipe out the long-term bad PA.”
The increase in Ethereum CME futures OI indicates growth in institutional interest, increased market activity, and optimism towards ETH.
Collaboration between VanEck and Galaxy Digital
However, this is not the only positive news attracting investor attention.
Recently, VanEck and Galaxy Digital announced a collaboration to launch new ETFs, providing exposure to digital assets. Both companies stated in their respective announcements that these ETFs will “go beyond” spot Bitcoin ETFs, indicating a broader range of digital asset investments.
According to a press release published on June 26th, “The collaboration between leading global asset management firms aims to bring the latest innovation in digital asset investment to investors.”
The report emphasizes that this collaboration highlights the synergy between the two leading companies, which will provide investors with a “digital asset ecosystem” worth $2.4 trillion through manager-guided strategies.
Community response
Galaxy Digital founder and CEO Mike Novogratz stated, “Expanding investment choices beyond pure spot Bitcoin is where we see the next level of growth in the ecosystem.”
This highlights how cryptocurrencies are increasingly becoming a mainstream asset class.
The cryptocurrency community is excited about this partnership because VanEck has been focusing on digital assets for over 30 years. It is also one of the largest ETF providers globally, launching the first ETF listed in the United States in 1993 and currently managing assets worth over $4.3 trillion. Therefore, this optimism is reasonable!
Not the first time
Interestingly, this is not the first time ETF news has spread like wildfire. Recently, Ripple CEO Brad Garlinghouse spoke at Consensus 2024, emphasizing the potential for additional ETFs in the works.
He said, “I think it’s just a matter of time; there will inevitably be an XRP ETF, a Solana ETF, and a Cardano ETF. That’s fantastic.”
Therefore, although it took decades for a Bitcoin ETF to be approved, it has opened the door for broader cryptocurrency adoption and potential approval of other ETFs on a larger scale.