NEW YORK, May 23, 2024 - Institutional investors are poised to inject approximately $500 million into Ethereum exchange-traded funds (ETFs) within the first week of their potential approval, according to analysis by crypto exchange OKX. Lennix Lai, OKX's global chief commercial officer, emphasized that Ethereum ETF approval could be as significant, if not more so, than the Bitcoin ETF approval.

Anticipation for the approval is intense, with the U.S. Securities and Exchange Commission (SEC) seemingly moving toward endorsing a spot price ETF for Ethereum. Since Monday, Ethereum has surged by 24%, and the proof-of-stake sector, including assets like Lido Staked Ether, has seen a 27% increase over the past week.

Leading asset managers, including BlackRock, Invesco Galaxy, Fidelity, and Franklin Templeton, are awaiting the SEC's decision, with VanEck expected to be the first to receive approval. The rollout of Ethereum ETFs is anticipated to mirror the Bitcoin ETF launch in January, which saw ten products trading over $1.5 billion and contributed to a 50% rise in the crypto sector's market value this year.

Analysts predict that Ethereum could reach $6,600 following ETF approval, with an Ethereum ETF expected to facilitate easier and cheaper access to the cryptocurrency for retail investors. While there may be concerns about the impact on crypto exchanges like Coinbase and Kraken, Lai believes that ETFs could expand the market, rather than detract from existing platforms.