The crypto community is rejoicing as the SEC approves the first-ever spot Ethereum ETFs, marking a landmark decision.
The news was announced hours ago, and it has sparked a new wave of delight across the crypto market. After months of lobbying and speculation by asset managers and crypto companies, the SEC has finally given the ETFs a green light.
Established names such as VanEck, BlackRock, and Fidelity were among the first applicants to get their approval from the SEC. The applicants filed their submissions back in November 2023 with different structures.
Eight spot Ethereum ETF applicants—including BlackRock, Grayscale, Bitwise, Van Eck, Ark 21Shares, Franklin Templeton, Fidelity, and Invesco Galaxy—had their 19b-4s files accepted later that day by the agency.
With the approval, companies such as Grayscale and Invesco are also getting ready to launch their Ethereum ETFs. The approval was surprising for many, as the SEC has expressed skepticism about ETFs and market manipulation. However, the commission has grasped the potential it boasts, allowing it to join the Bitcoin ETF roadmap.
Even now, individual ETFs must get separate approval from the SEC before listing. Gary Gensler, the SEC Chair, has not shared any comment on the situation. Notably, Gary had shared concerns about ETFs’ market manipulation and investor security a month ago.
Investors should expect to wait at least 2–3 weeks before trading the ETFs, despite the confirmation. That is why the monumental decision has not greatly boosted ETH’s market price.
In the past 24 hours, Ethereum has gained a mere 0.87% surge, which is not different from its standard movement. The crypto is trading near the $3,800 mark, which is 22.3% below its peak.
Even then, the massive decision is a huge win for crypto and the overall market. The approval signifies a huge step toward the mainstream adoption of cryptocurrencies. Ethereum ETFs, similar to Bitcoin ETFs, offer an accessible way for new investors to indulge in crypto assets.
It is sure to attract new capital and investors to the crypto industry. There is a general consensus that the ETF approval will boost Ethereum’s price in the upcoming months. Even Bitcoin had to wait two months before the approval’s implications kicked in.
In just a few months, the cryptocurrency surpassed its all-time high record before entering a correction phase. Ethereum is also anticipated to exhibit a comparable market movement, at least in 2024.
The SEC’s historic ruling may mark the beginning of a crypto golden age, one in which cryptocurrencies are more deeply embedded in established financial markets.
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