Ethereum ETF listed, short-term impact may be less than Bitcoin, long-term significance is substantial.

On July 23, 2024, the US Ethereum Spot ETF officially began trading, coinciding with the 10th anniversary of the first public sale of Ethereum. This event is of great significance for the sustainable development of the encryption world, marking an important step for POS public chains into the mainstream financial world. It will attract more developers to join the Ethereum ecosystem construction and also pave the way for other infrastructures like Solana to enter the mainstream world, which has substantial significance for the popularization process of the Blockchain ecosystem.

However, due to regulatory reasons, Ethereum ETFs are currently not allowed to stake. This means that investors holding ETFs will receive 3%-5% less staking mining rewards compared to directly holding Ethereum tokens. Additionally, the understanding threshold for ordinary investors regarding Ethereum is relatively high, so the short-term impact of this ETF listing on the price of Ethereum may not be as significant as the impact of the Bitcoin ETF on BTC prices. It more so enhances the relative stability of Ethereum's price and reduces volatility.

In the short term, the buying and selling power of the Ethereum ETF is not as strong as that of the Bitcoin ETF, and its impact is expected to be smaller than that of Bitcoin. On the selling side, the $9.2 billion Grayscale ETHE's management fee difference compared to its competitors will still lead to early moving sell-offs, but the scale may be smaller than the outflows of GBTC. On the buying side, the strength from the stock market is weak, as the public's consensus on Ethereum is far less than that of Bitcoin, leading to minimal asset allocation momentum. Furthermore, there is basically no buying power from within the encryption circle, as the ETF lacks the on-chain 3%-5% base staking yield.

In the long term, the Ethereum ETF has paved the way for other encryption assets to integrate into the mainstream world. As the largest public chain currently, the approval of its Spot ETF is an important step for public chains to enter the mainstream financial world. According to SEC approval standards, Ethereum meets the requirements in terms of anti-manipulation, liquidity, and pricing transparency. In the future, more eligible encryption assets may enter the public investors' view through Spot ETFs.

In summary, the short-term impact of the Ethereum Spot ETF may be less than that of the Bitcoin ETF, but its long-term significance is substantial. It further paves the way for the application of encryption in mainstream asset allocation. At the same time, the mainstream world is gradually entering the encryption world through RWA tokens, achieving efficient circulation of global financial assets. This marks the acceleration of the integration of encryption with traditional finance, which may bring more investment opportunities and market volatility in the future.