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Investor Reveals One Reason Why ETH ETF is Attracting Retail Interest

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Arthur Cheong, the CIO and co-founder of DeFiance Capital, a prominent Asian VC firm, expressed his excitement for the approval of spot Ethereum ETFs. He believes that retail investors will be thrilled by the opportunity to invest in Ethereum through these exchange-traded products. Drawing parallels to the 2017 crypto boom, Cheong suggests that Ethereum played a significant role in attracting a new cohort of investors to the cryptocurrency space. He emphasized the importance of Ethereum as the decentralized technology behind the Web3 economy, stating that he cannot imagine a scenario where retail investors would not be excited by this development.

Cheong pointed out that over 70% of spot Bitcoin ETF positions are held by retail investors, indicating the potential for a similar trend with Ethereum ETFs. He highlighted the fintech narrative of XRP and the revolutionary aspects of Ethereum that attracted investors in 2017. Despite the changes in technology and the Ethereum ecosystem over the past seven years, its status remains undisputed in the Web3 scene. The approval of spot Ethereum ETFs could potentially bring a new wave of retail investors into the cryptocurrency market, similar to the impact of the 2017 crypto run.

In May 2024, the U.S. SEC approved 19b-4s requests for Ether ETFs’ launch, marking a significant milestone for the cryptocurrency industry. While the most crucial S-1s forms are yet to be authorized by the regulator, the approval of preliminary forms signals a positive trend for Ethereum ETF enthusiasts. However, the price of Ether failed to reconquer the $4,000 mark immediately after the approval, dropping from $3,830 to $3,670. Despite the lackluster performance, Ether remains a popular choice among investors, with the price currently hovering around $3,743 on major exchanges.

The approval of spot ETFs on major cryptocurrencies like Ethereum could potentially attract a new cohort of retail investors to the Web3 economy. Arthur Cheong’s optimism about the impact of Ethereum ETFs on retail investors reflects the growing interest in cryptocurrencies as a lucrative investment opportunity. As the cryptocurrency market continues to evolve, the approval of ETFs on leading digital assets could further legitimize the industry in the eyes of traditional investors. With the potential to bring more investors into the fold, the approval of spot ETFs on cryptocurrencies like Ethereum could mark a new chapter in the adoption of digital assets.

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