Spot ETFs on Ethereum Have Been Approved!

Filippo Iachello

3 min

Ethereum: Spot ETFs Approved!

Spot ETFs on Ethereum have been approved. Discover all about the unexpected move by the SEC!

The spot ETFs on Ethereum, which until last week seemed unlikely to see the light of day, at least for this batch of deadlines, have been approved!

Buy ETH!

The SEC has issued an official statement declaring that all such financial instruments proposed by American funds can be traded, although it has not yet defined the date when trading will officially begin.

If you haven’t followed industry news for a few days, you will surely be surprised by the decision. What happened? Why did the SEC make this U-turn?

Ethereum: Spot ETFs Approved

The approval of spot ETFs on Ethereum, which seemed unlikely in recent months, arrived today: Thursday, May 23, 2024. The requests from BlackRock, Fidelity, VanEck, ARK Invest and 21 Shares, Grayscale, Hashdex, and Invesco have all been approved. These players, already issuers of spot ETFs on Bitcoin, can now offer their clients these brand-new financial instruments.

With the approval of Bitcoin ETFs, a new era for the cryptocurrency sector began, marked by a radical change in perception compared to previous years. Moreover, the time interval between these two historical events allows us to analyze probable future developments and make some data-supported predictions.

Bitcoin ETFs have attracted about $13 billion into the market from January 10, 2024, to date, while the price of Bitcoin has recorded an abundant +50% since the day of approval. What will happen to Ethereum?

Discover ETH price!

Obviously, it is difficult to imagine this level of adoption even for these financial instruments on Ethereum, but it is worth noting that the capitalization of the crypto is about a third of Bitcoin’s. Therefore, even if the inflows are lower, it is possible that the approval will have a significant impact on the price.

Spot ETFs on Ethereum: The Political Issue

According to many industry commentators, the decision to approve spot ETFs on Ethereum was strongly influenced by the current U.S. political situation, especially the upcoming presidential elections.

In particular, it is believed that the approval of financial instruments on ETH is a sort of response from the Democrats to Donald Trump’s statements at the beginning of May. The Republican presidential candidate had declared himself in favor of cryptocurrencies, describing Joe Biden, his political rival, and the general Democratic front, which also includes Gary Gensler, the chairman of the Securities and Exchange Commission, as antagonists.

Is the approval thus a political response to Trump’s statements from the Democrats, who intend to “befriend” crypto enthusiasts to gain their political support? Or are the issues unrelated, and the SEC’s decision was made through a careful fundamental analysis of Ethereum? It will probably be impossible to uncover the truth. But this very important event could give ETH and the entire market the final push and kick off the most explosive phase of this bull market.

Related Article

Ultra rare pokémon cards: ranking and prices
profit and loss young platform
zkSync (ZK): you can purchase it on Young Platform Pro starting today!

Download the Young Platform app

Downaload From Google PlayStoreDownaload From Apple Store