Matrixport: 'Futures Investors Optimistic About Final Approval of ETH Spot ETF'

Matrixport: 'Futures Investors Optimistic About Final Approval of ETH Spot ETF'

Matrixport, a digital asset financial services platform, has released a report indicating that futures investors are optimistic about the imminent approval of an Ethereum (ETH) spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). The report analyzes the increased trading activity in ETH futures, highlighting that long positions have significantly increased since May 20th, from 2.7 million ETH to 3.1 million ETH, signaling a growing anticipation among investors for the ETF's final approval. "The surge in ETH futures long positions suggests that investors are positioning themselves ahead of the expected approval of the ETH spot ETF," said Matrixport in the report. "This indicates that the market is anticipating a positive response from the SEC." Notably, the report also suggests that this time around, the "sell the news" effect, where investors sell their assets right after a significant event or announcement, might not occur when the ETF is approved. "Unlike previous ETF approvals, the Ethereum spot ETF may not face a 'sell the news' event as investors are likely factoring in the potential long-term benefits of holding an ETH ETF," said Matrixport. The SEC has faced pressure to approve a spot ETF for Ethereum, which tracks the price of the underlying asset directly, for some time now. The approval of such an ETF would provide a regulated and convenient way for investors to gain exposure to Ethereum. While the SEC has yet to approve a spot ETF for Ethereum, the recent report from Matrixport suggests that investors are optimistic about its imminent approval.