The SEC approved listing spot Ethereum ETFs on major exchanges, seen as a big step for Ethereum.
Trading won't start immediately, there's another approval step needed that could take weeks or months.
This approval brings regulatory clarity and could push Ethereum prices up in the long term, with some predicting a 3-4x increase.
The U.S. Securities and Exchange Commission (SEC) has given the nod for spot Ethereum ETFs to hit major exchanges like NASDAQ and NYSE, marking a pivotal moment for the cryptocurrency world. This move not only signals progress but also positions Ethereum as the sought-after “digital oil” in the crypto space, akin to Bitcoin’s status as “digital gold.”
But wait… don’t start the party just yet.
Evaluating the Performance
Despite Ethereum’s surge, it still trails behind Bitcoin’s dominance. On May 24, Bitcoin spot ETFs saw a massive net inflow of US$252 million, continuing a streak of ten days of inflows. Notably, Grayscale ETF GBTC remained neutral, while BlackRock ETF IBIT saw an inflow of $182 million, and Fidelity ETF FBTC attracted $43.7083 million.
Big Players Can Change the Outcome
Big players like BlackRock backing Ethereum marks a turning point, potentially bringing it into the mainstream investor fold. This endorsement not only validates Ethereum’s potential but also hints at its growing appeal among institutional investors.
Two-Step Approval Process
Next to follow will be the 2-step process. Despite the excitement, it’s important to note that trading won’t commence immediately. The SEC has approved the listing of these ETFs, but individual ETF registration statements still require approval. This two-step process involves both listing approval, which has been completed, and product approval, which remains pending.
As a result, actual trading might still be weeks or even months away, mirroring the approval process for Bitcoin ETFs.
Why the Change of Pace for SEC?
Aeron from Altcoin Daily suggests that the sudden approval could be politically motivated, with both presidential candidates seeking the crypto community’s support. This swift, somewhat unexpected decision may reflect strategic moves in an election year, indicating the growing influence of the cryptocurrency sector in political arenas.
Wild Ride for ETH Price
Before the SEC’s announcement, Ethereum’s price went on a rollercoaster. It dipped to $3,500, surged to nearly $3,900 on ETF rumors, settling above $3,800 post-confirmation. Despite this, Ethereum still hasn’t reached its November 2021 peak of $4,800, currently hovering around $3,700.
With regulatory clarity, Aeron predicts a bullish trajectory for Ethereum. With exchange balances dropping and ETF-driven demand looming, Aeron forecasts a three to fourfold surge in Ethereum’s value over the next 18 months, potentially hitting $11,000 to $15,000 per coin.
This optimistic outlook underscores the transformative potential of the recent ETF approval, hinting at Ethereum’s ascent to new heights.
The future of Ethereum is wide open. What are you most excited about?
Also Check Out : ChatGPT Predicts Massive Ethereum Price Jump Ahead of ETF Listing