Author: Frederick Munawa Source: unchainedcrypto Translation: Shan Oppa, Golden Finance

According to industry experts, The highly anticipated spot Ethereum (ETH) exchange-traded fund (ETF) could launch as early as July 23. Similar to the launch of 11 spot Bitcoin (BTC) ETFs in January of this year, the resulting surge in demand may drive ETH prices higher, but the increase may not be as significant as that of Bitcoin, which has Spot ETFs hit record highs after being listed. The scale of this success is likely to have less of an impact on Ethereum than it does on Bitcoin.

Bitcoin is a pioneer. Bitcoin is primarily a financial asset, used as a safe-haven asset, while Ethereum’s value stems from the activity of developers on its platform.

The latest developments for Ethereum began in late May, when the U.S. Securities and Exchange Commission (SEC) unexpectedly approved transactions from BlackRock, Bitwise, Grayscale, Form 19b-4 for Van Eck, Ark 21Shares, Fidelity, Franklin Templeton and Invesco Galaxy’s spot Ethereum ETFs. These forms are a key part of the pre-qualification process for the SEC ETF approval process.

Now, these entities will need to submit final S-1 forms by today, which if approved, will result in approval of a spot Ethereum ETF as soon as next Tuesday listing, which may be a big boon for ETH investors.

"ETFs are probably going to see a lot of inflows," cryptocurrency investor Lark Davis told Unchained. Even if there is some price volatility in the first day or two of these products being available, the tailwinds are converging.

According to CoinMarketCap data,before and after the approval of 19b-4, the price of Ethereum once rose by about 30% to $3,943, and then early this month It fell below $3,000 at some point. Ethereum is currently trading at around $3,445, up more than 12% from last week.

Pedro Lapenta, director of research at Hashdex, an investment firm that manages Bitcoin futures ETFs, expects inflows into the Ethereum ETF to reach about $5 billion by the end of 2024. However, Lapenta told Unchained that sustained price action may take time.

We believe the price of ETH will react positively in the short term and the true impact of these ETFs on price will be felt over the longer term.

The Trump factor

 The entire cryptocurrency market is also affected by Donald Trump The presidential prospects have been boosted by Donald Trump, who is ahead of current President Joe Biden in opinion polls after thwarting an assassination attempt on Saturday.

Trump, who has previously been critical of cryptocurrencies, said If he wins the November election, he will become a A pro-crypto president. In May, he became the first major presidential candidate in U.S. history to accept cryptocurrency donations.

However, Bill is skeptical about the impact of a potential Trump victory on long-term cryptocurrency prices, noting that the U.S. president often breaks campaign promises.

I would like to believe that Trump will continue to support cryptocurrencies after taking office, but unfortunately, I have no reason to believe this.

If the spot Ethereum ETF launches next week, it would be launched ahead of the annual Bitcoin conference in Nashville on July 24, when  Trump will attend as a special guest. Trump has confirmed that he will speak at the conference despite being injured in the assassination.

The controversial former president has received $1.8 million in Bitcoin donations and nearly $1 million in Ethereum, according to the Wall Street Journal . According to NFT website nftevening.com, he also launched a "Mugshot Edition" NFT last year after being indicted for election fraud, in addition to his other collectibles, including US President Trump's NFT collectibles and Donald Trump's Trump’s NFT collectibles.    

Conversely, many believe President Joe Biden is completely opposed to cryptocurrencies, as the U.S. Securities and Exchange Commission has targeted many cryptocurrency companies during his administration took a hostile stance. Biden himself vetoed a proposal to repeal SAB 121 — an SEC accounting standard that made it onerous for banks to serve cryptocurrency clients.

Before the veto, Trump's campaign  appeared to criticize Biden's stance on cryptocurrency regulation, touting Trump's work on "financial technology innovation ” record while slamming Biden’s stricter cryptocurrency policies.

Unlike Bill, Davis told Unchained that he hopes Trump can fulfill his commitment to cryptocurrency.

"I think the White House can issue some very positive cryptocurrency announcements and regulations," Davis said. “This is a strangely bullish moment for the market.”

Regardless of the outcome of the election and the resulting crypto regulatory landscape, most analysts are It is believed that the spot Ethereum ETF will increase the price of ETH in the long term, even if the price fluctuates shortly after launch.

"Regardless of the short-term price trends for BTC and ETH, we believe the long-term investment outlook for cryptocurrencies remains as strong as ever," Lapenta said. "Current prices may provide an attractive entry point for long-term investors."