The final approval of the Ethereum ETF marks the rise of institutional interest. The collaboration between VanEck and Galaxy Digital expands the range of ETFs 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 4, but the market reaction has been poor.
According to CoinMarketCap data at the time of writing, Bitcoin (BTC) and all major cryptocurrencies showed red candlesticks on the daily chart.
However, price movements are not the only indicator of investor interest.
Institutional interest in Ethereum surges
In fact, despite the recent price drop, the ETH Chicago Mercantile Exchange (CME) futures open interest (OI) continues to rise, reflecting the trend observed in BTC before the start of ETF trading.
Renowned blockchain influencer Oliver Isaacs pointed out on X (formerly known as Twitter), “Do not be blinded by the slow bleeding market conditions, a bullish candle will wipe out the long-term poor PA.”
The increase in Ethereum CME futures OI indicates growing institutional interest, increased market activity, and optimism for 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 investment in digital assets.
According to a press release dated June 26, “The collaboration between leading global asset management firms aims to bring the latest innovations in digital asset investing to investors.”
The report states that this collaboration highlights the synergy between the two leading companies and that they will provide investors with a “2.4 trillion dollar digital asset ecosystem” through manager-guided strategies.
Community response
Galaxy Digital Founder and CEO Mike Novogratz stated, “Expanding investment options beyond pure spot Bitcoin is where we see the next level of growth in the ecosystem.”
This highlights how cryptocurrency is increasingly becoming a mainstream asset class.
The cryptocurrency community is excited about this partnership because VanEck has been focused on digital assets for over 30 years. It is also one of the world’s largest ETF providers, launching the first ETF listed in the United States in 1993 and currently managing over $4.3 trillion in assets. 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, it’s inevitable that there will be an XRP ETF, there will be a Solana ETF, and there will be a Cardano ETF, it’s great.”
So, although it took decades for a Bitcoin ETF to be approved, it has opened the door for broader cryptocurrency adoption and the potential approval of other ETFs on a larger scale.
