As of 09:43 UTC, Ethereum is trading at $3876.60, down by 0.80%. Despite this slight decline, Ethereum is holding relatively steady and appears poised for a breakout. One significant development contributing to this optimistic outlook is the introduction of Ethereum Exchange-Traded Notes (ETNs) on the London Stock Exchange.
21 Shares Launches Ethereum ETNs on LSE
Today, 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs), announced the launch of four physically-backed crypto-asset ETNs on the London Stock Exchange.
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We’re delighted to share that our trailblazing products ABTC, CBTC, AETH, and ETHC are now listed on the London Stock Exchange! This is a significant step forward in our mission to democratize cryptocurrency investments. They offer a unique opportunity to diversify portfolios and… pic.twitter.com/f2yIdKpA4Y
— 21Shares (@21Shares) May 28, 2024
This marks 21Shares’ official entry into the UK market, providing professional investors access to these innovative investment products. Each ETN is listed in GBP and USD, catering to various investor preferences.
ETNs Available in USD and GBP
The newly listed ETNs include the 21Shares Ethereum Staking ETN and the 21Shares Ethereum Core ETN, both available in GBP and USD. The total expense ratios for these ETNs are competitively priced, with the Ethereum Staking ETN at 1.49% and the Ethereum Core ETN at 0.21%. Recent regulatory changes in the UK allow professional investors to access Bitcoin and Ethereum-backed exchange-traded notes. This follows the Financial Conduct Authority’s (FCA) new permissions.
Also Read: Market Expert Predicts Ethereum Price Hike Following Spot ETF Approvals
UK Market is One of The Most Liquid Globally
Ophelia Snyder, co-founder of 21Shares, emphasized the importance of the UK market, stating, “The UK is one of the deepest, most liquid capital markets in the world. As institutional interest in cryptocurrencies grows, it is only natural that the London Stock Exchange hosts responsible, properly constructed funds offering access to these markets.
That’s where an established firm like ours, with a proven track record through volatile markets, can play an integral role. We have listed more than 40 ETNs on 11 different stock exchanges. We are excited to be part of this evolution in the UK.”
Institutional Demand is on The Rise
Hany Rashwan, another co-founder of 21Shares, added, “Crypto is here to stay. There is a clear role for decentralized finance in a global world, and more people are coming to that point of view. More and more institutional investors want exposure to the transformational potential of cryptocurrencies as part of a balanced investment portfolio.
That demand already exists, and we are helping to supply the products to meet that demand. We are keen to watch how the space evolves and how we can continue to support growth in the sector as the regulatory environment progresses.”
The potential impact of these new ETNs on Ethereum’s market performance cannot be overstated. These ETNs offer regulated, transparent, and secure Ethereum access, likely drawing significant interest from professional and institutional investors. This could boost investor engagement substantially. This increased visibility and accessibility could act as a catalyst for a substantial price breakout.
SEC Likely to Approve S-1s Soon
In addition to the ETNs, there is positive news regarding the potential trading of Ethereum Exchange-Traded Funds (ETFs). The SEC has recently approved 19b-4s, paving the way for the launch of Ethereum ETFs. Although the S-1s have not yet become effective, industry experts anticipate that approval could come within the next few weeks to a few months.
Nate Geraci, founder of ETF Institute, noted on social media that the “heavy lifting” has already been done following the approval of Bitcoin ETFs and Ethereum futures ETFs. This implies that the SEC may expedite the approval process for Ethereum ETFs to prevent market manipulation by spot traders.
When will SEC approve spot eth ETF registration statements?
*Nobody* knows for sure, but my expectation would be next few weeks.
2-3 months max.
IMO, heavy lifting already done following spot btc ETFs & eth futures ETFs.
Just a matter of how long SEC wants to string this out.
— Nate Geraci (@NateGeraci) May 28, 2024
The launch of Ethereum ETNs on the London Stock Exchange and the likely approval of Ethereum ETFs indicate a potential major price rally for Ethereum. These positive developments suggest a promising uptrend for the cryptocurrency. As the broader cryptocurrency market turns bullish, Ethereum stands out as a top cryptocurrency to watch in the coming days.
Ethereum Trending Towards $4088 Resistance as Buying Volumes Rise
Source: TradingView
Ethereum gained upside momentum after consolidating for the better part of last week. Today, it is showing upside momentum and trending towards the $4088.5 resistance. If this resistance is broken, Ethereum could rally to an all-time high of $4800. On the other hand, if bulls lose momentum, there is a strong chance that Ethereum could continue consolidating around the $3721 support.
Why a Breakout to $4800 is Most Likely
Current scenarios suggest Ethereum is likely to head for a bullish breakout, potentially reaching $4800 or higher. The odds favor a significant upward move. This will likely be triggered by news that Ethereum ETN trading is now live on the London Stock Exchange. The expected surge in demand could trigger Ethereum FOMO today.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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