The US Securities and Exchange Commission (SEC) has made waves by approving the sale of spot Ether Exchange Traded Funds (ETFs) on May 23, 2024. This approval means that Ethereum ETFs will be available later this year for trading on major US exchanges such as Nasdaq, CBOE, and NYSE once the final paperwork (Form S-1) gets the green light.
Earlier this year, after Bitcoin ETFs were approved in January, big names in asset management like BlackRock and Grayscale and seven other firms applied for spot Ethereum ETFs. There was a lot of uncertainty on the approval because the SEC was still debating whether Ether should be considered a security. But when the SEC gave its thumbs up to 8 ETF issuers on Thursday morning, it caught everyone in the crypto world by surprise.
The approved firms for the Ethereum ETFs include:
- Grayscale
- Bitwise
- iShares by BlackRock
- VanEck
- ARK 21Shares
- Fidelity
- Franklin
Note: HashDex's ETF application is still awaiting approval, and the decision has been postponed until May 30th.
However, the 8 firms whose 19b-4’s have been approved still need the SEC to approve their S-1 registration statements for the ETFs to start trading officially. Experts think this final step could take anywhere from a few days to several months. On May 20, the SEC asked the applicants to speed up their filings. One significant change in the updated applications is the removal of staking, which is in place with the recent regulatory guidance.
This SEC approval is a huge step for the crypto market, bringing more legitimacy to digital assets and opening up new investment opportunities. The crypto community is buzzing with excitement and anticipation, as this move marks a significant moment in integrating cryptocurrencies into the mainstream financial system.
Ethereum ETF Approval: Impact on Ethereum's Price
Bitcoin's price soared from $46.1k on January 10, 2024, to $72.6k on April 8, 2024, marking a 57.4% increase in just four months following the approval of the Bitcoin ETF. A similar trend can be seen in Ethereum. Amid growing speculation about Ethereum ETF approval, many large investors and industry giants began increasing their Ethereum holdings, leading to a price increase of approximately 20% from a week before the approval.
Furthermore, analysts are quite bullish on Ethereum price movements, suggesting that it could surge by up to 60% after the Ethereum ETF approval. This fresh optimism from Wall Street about the ETF potentially giving crypto a big boost has also fueled bullish forecasts for both ether and bitcoin. Standard Chartered, has also predicted that ether could hit $8,000 by the end of the year, which would also push bitcoin up to a target of $150,000.
And there's more optimism swirling around Ethereum. Many analysts think that approval of Ethereum ETF will bring a wave of positivity for Ethereum, potentially driving its price up by a whopping 75%. As asset managers start increasing their Ethereum holdings, the market could really take off to the moon.
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