The benefits of Ethereum ETF approval are for both the crypto-market and the its investors. Let’s briefly discuss the potential benefits of ether ETF:
Table of Contents
Benefits of Ethereum ETF Approval.
- Entry of Traditional Investors- With the approval of Ethereum ETF, traditional investors can trade Ethereum like shares in the stock market.
- Recognition of Ether as Commodity
- Crypto market Expansion- The Hong Kong’s Ethereum ETF approval boosts the confidence of investors in the ether and other altcoins. This would add new users to the crypto-world.
- Boost in Prices- The Ether ETF approval increase the demand for the ether coin. This would in turn increases the price of Ethereum coin. Since the altcoins follow the ETH movement, they would also witness the price movement in upward direction.
- Future upgrades-Ethereum would see more upgrades in future. The upgrades would make Ethereum more fast, secure and scalable.
What does Ethereum ETF mean?
Ethereum ETF means that the traditional investors would be able to keep track of the price movements of Ethereum even without owing it.
It is analogous to the purchase of shares of a stock without understanding the complexities of its business. Consider Ethereum ETF as a basket of goods which represent the value of Ethereum. So, instead of going for the Ethereum coin directly on crypto-exchange, we can buy the shares from popular stock exchanges like NYSE.
Thus, a new comer into the crypto industry no longer need to manage the digital wallets or go to complex cryptocurrency exchanges. With Ethereum ETF traditional investors get familiar experience to trade Ethereum.
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Is Ethereum ETF a good investment?
Investing in the Ethereum ETF can be a good option, owing to its ETF approval by Hong Kong and strong fundaments. However, one has to look for its Pros and Cons before making any decision.
Advantages of Ethereum ETF: Pros
- With Ethereum ETF approval, traditional investors get an entry point to trade in Ethereum.
- Moving beyond the traditional assets and diversifying the portfolio with digital assets.
- Provision of a secure a regulated market for trade.
- Enough Liquidity to buy or sell shares.
Disadvantages of Ethereum ETF?: Cons
- Management fee need to paid which lower the returns.
- Indirect ownership of Ethereum instead of direct ownership.
- Not secure from the cryptocurrency volatility.
- Tracking error in the price of Ethereum ETF due to fee and other factors.
So, before investing consider the potential risks associated with the ETFs along with short term or long term investment options.
What is the future of Ether?
Ethereum is second to Bitcoin in terms of the market-cap. It is more than a digital currency as if offers innovative ways to interact with the blockchain networks. Its powers the DApps (Decentralized applications) and acts as a backbone of many crypto projects.
Ethereum is the backbone of DeFi ecosystem by providing numerous financial services like lending and farming.
The recent upgrade of Ethereum in London Hard Fork has added more security and scalability to it. It has reduced the gas fee of Ethereum thereby making it cost effective.
Price Prediction of Ethereum
Short Term (2024-25)
It is expected that Ether would reach around $5000 by the end of 2024. In year 2025 it could be found around $6000 as anticipated by the analysts.
Mid Term 2030
As per experts the price of ETH could surpass $20000 by year 2030.
Long Term 2040
By the year 2040 and beyond it is anticipated the ETH would reach the figure of $40000.
In cryptocurrency market nothing can be predicted with cent percent accuracy. The price of ETH may reach $100,000 within few years if everything remained in its favor. Expect the other way around as well!
Conclusion
Certainly, after Bitcoin Ethereum is the coin which holds maximum trust of its investors. The project is strong and updating itself with technology and requirement. It is a good invest for long term as well as for medium term. However, cryptocurrencies are subject to volatility and risk which needs to be considered as well.