Investor excitement is palpable as the first nine US spot Ethereum ETFs launched on major exchanges, following the SEC's approval. This opens the door for both Wall Street and retail investors to gain exposure to Ethereum, the second-largest cryptocurrency, through a regulated investment vehicle.

Bloomberg reports nearly $10.3 billion in assets under management (AUM) for these new funds, with a significant portion residing in existing Grayscale products like the Grayscale Ethereum Trust (ETHE). Industry giants like BlackRock, Fidelity, and VanEck are vying for dominance in this new market, with Alluvial CEO Mara Schmiedt predicting over $20 billion to flow in during the initial launch months.

This capital influx is expected to significantly impact Ethereum's price, potentially pushing it beyond its previous peak of $4,878. Currently trading around $3,400, ETH sits roughly 28% below its all-time high. Schmiedt highlights that with a substantial portion of ETH already locked in staking, DeFi, and bridges, combined with another 10% on retail exchanges, ETF-driven inflows could have a major upward effect on price.

While these ETFs don't offer staking functionality, Schmiedt sees this as an opportunity. Unlike Bitcoin, Ethereum staking offers a native return of around 3.3%, which could be attractive for investors seeking fixed-income alternatives to traditional investments. This could lead to portfolio diversification and a hedge against inflation.

The launch of spot Ethereum ETFs, coupled with the success of spot Bitcoin ETFs and growing overall demand for cryptocurrencies, paints a bullish picture for the remainder of this market cycle.