Big Win For Ethereum As The SEC Approved All Spot Ethereum ETFs

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In a landmark decision on May 24, 2024, the U.S. Securities and Exchange Commission (SEC) has approved all Spot Ethereum Exchange-Traded Funds (ETFs), marking a pivotal moment in the cryptocurrency market. This approval ends a prolonged period of anticipation and debate, signaling a new era for Ethereum and the broader crypto industry.

The approval of all Spot Ethereum ETFs is more than just a regulatory milestone; it represents a significant endorsement of Ethereum’s legitimacy and potential as a mainstream investment vehicle.

BREAKING: The SEC has officially approved Ethereum ETFs. #ETH pic.twitter.com/tVYTxJy23C

— The Kobeissi Letter (@KobeissiLetter) May 23, 2024

Meanwhile, the decision came just five months after the agency approved Spot Bitcoin ETFs on 11 Jan 2024. This marks the approval of the country’s second crypto-based ETF and represents a significant shift in the accessibility of the second-largest cryptocurrency to institutional investors.

SEC Approved Spot Ethereum ETFs

As the SEC has approved all eight spot Ethereum ETF applications filed by VanEck, Fidelity, Grayscale, Bitwise, Hashdex, ARK Invest & 21Shares, Invesco & Galaxy, and BlackRock. After a thorough review, the SEC concluded that these proposals are consistent with the rules and regulations of the Exchange Act and the securities exchange.

In a recent tweet, crypto analyst James Seyffart clarified that the SEC’s approval doesn’t mean the ETFs will begin trading immediately. He emphasized that this is just the approval of the 19b-4 filings. 

TO BE CLEAR: This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be an approval on the S-1 documents which is going to take time. We’re expecting it to take a couple weeks but could take longer. Should know more within a week or so!

— James Seyffart (@JSeyff) May 23, 2024

The S-1 documents also need approval, which will take additional time. Seyffart anticipates this process could take a couple of weeks but might extend longer. He expects more information to become available within a week or so.

Ethereum Price Surge

Following the SEC’s approval, Ethereum’s price experienced a significant surge, currently trading at $3,878. This sharp recovery came after a news of sec approval of Spot Ethereum ETF.

Ethereum’s technical indicators show a balanced market, with long and short liquidations nearly equal at $31.22 million and $31.21 million, respectively. This balance suggests that the market is poised for potential stability or upward movement in the wake of the ETF approval.

The approval has injected fresh optimism into the market, encouraging investors and potentially paving the way for further price appreciation.