After months of speculation and doubts, the United States Securities and Exchange Commission (SEC) has finally approved 8 spot Ethereum ETF applications for trading.
Spot Ethereum ETF: Delay Not Denial
The run-up to this approval brought out many controversies across the board. While market analysts projected more than 75% approval odds, many spread rumors of denial on X. These rumors stemmed from the historic delays in applications for this product from the SEC before now and the silence leading to the final approval.
The approval for the spot Ethereum ETF product was granted to VanEck, BlackRock, Fidelity Investments, Grayscale Investments, Ark 21Shares, Invesco Galaxy, Franklin Templeton, and Bitwise. The approvals as the markets regulator noted were granted on an accelerated basis.
This approval is historic as it now places Ethereum as an asset that institutional investors can bet on in a regulated manner. The major exchanges that will host these products include NYSE Arca, Cboe, and NASDAQ.
Prior to this approval, the applicants made compromises by removing their staking options among others. History was finally made as projected earlier by Crypto-Vanguard.
Impact on Ethereum
The approval of this spot Ethereum ETF might mirror a related boost seen when a similar Bitcoin product was approved in January. Capital inflow from the corporate world might help cushion the available Ethereum on exchanges, fueling a major price rally overall.
At the time of writing, the price of Ethereum is yet to react to the news as expected. It is up 0.94% in the past 24 hours to $3,800.22. Though Ethereum is outperforming Bitcoin which is down by 2.91%, it is underperforming the general market which is up 2.83% with its market cap pegged at $2.51 trillion.
When properly priced in, the medium-term expectation is that the price of Ethereum will soar to its previous All-Time High (ATH) of $4,891.7.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.