I'll admit I was a sceptic of an Ethereum $ETH spot ETF would ever launch. After bitcoins listing we as a renewed and very aggressive push once again against Ethereum by the SEC forced by the current people in the white house. However all of that seems to now be overruled by the court system and the house which now puts a vast majority of crypto out of the hands of the SEC (being a security) and into the hands of the CFTC which is much less aggressive in terms of filing lawsuits and the likes.

A few months ago we also got news that Ethereum ETFs where submitted and then approved but those approvals to listings were speculated not to happen until min August or early September. Now three weeks ahead of what many thought what I personally thought I'd never see happen a year ago just happened and that's the official release of Ethereum ETFs.

What Does a Spot Ethereum ETF Do?

A spot priced ETF is much different than a futures contract which was approved years ago. A futures contract to me is like gambling and betting. You're betting on the price to rise or fall but you never actully hold the asset ever.

A spot priced ETF for Ethereum means the company that is offering the ETFs must hold the asset themselves as it's bought off the market. Thus is has a direct impact on the price of Ethereum or in other cases Bitcoin for the Bitcoin ETF.

The Benefits

Now you might be thinking what's the point of that if I can just go out and buy Bitcoin or Ethereum off the market myself on platforms like Robinhood or Coinbase. And while yes that's true what ETFs allow is for large cap investors and more importantly that money you have tied up in your 401k to actully be invested into these crypto assets as well.

That essentially opens up trillions of dollars worth of value into the Bitcoin and Ethereum ETFs.

Now there's speculation as to what the next token will be to be listed as a spot ETF with many pointing towards Solana but I'm going to be honest with you here. I see no reason or push as to why any of these companies would offer up a spot ETF for anything besides Bitcoin and now Ethereum.

That's mainly because Bitcoin was the bread and butter of it all the store of value which everyone is after and Ethereum on the other had is approved mainly because places like Blackrock are launching their own layer two RWA (Real World Assets) tokens on it.

So to open up yet another new ETF in which none of these large cap companies have any stake or push to do so I think is far fetched at the moment. What you would want to look for is one of these large companies adding their own layer two token to them.

Staking

Now the crazy thing about this is with Bitcoin you had a normal store of value. Holding it did nothing it didn't mine more for you or anything like that. However with Ethereum changing to proof of stake it's now possible to hold the token and earn more of the token.

It seems pretty clear that these ETFs will not offer any type of dividend yeild so it begs the question will these powerhouse companies start running a node with at least some of the funds and start banking on staking rewards?

The cost to run a node and earn staking rewards is actully stupid low if you have the tokens already. A computer of $1,000 or much less would be capable of running a Ethereum node.

Posted Using InLeo Alpha