SEC Approves Spot Ethereum ETFs: What Does This Mean for the Market
Date: 2024-05-24 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Regulatory approval
On May 23, 2024, the US Securities and Exchange Commission (SEC) gave its approval for the listing of spot Ethereum ETFs. This was an important event for the cryptocurrency community and investors awaiting new opportunities in the digital asset market.
Issuers and Submitted Applications
Companies approved for listing included BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton. These issuers have filed Forms 19b-4 required to launch spot Ethereum ETFs, The Block confirms.
Time Frames and Forecasts
While the SEC's approval opens the door to new funds, it doesn't mean they will begin trading immediately. Analysts note that S-1 documents also need to be approved, which could take some time. It is expected that this process may take several weeks, possibly longer. However, more precise information on the time frame is expected within the coming week.
Impact on Ethereum Price
Interestingly, the Ethereum (ETH) rate showed almost no reaction to this news. At the time of writing, it is trading around $3,780. This may indicate that the market has already taken into account such expectations and events.
Example with Bitcoin ETF
The SEC previously approved spot Bitcoin ETFs in January 2024, which led to active trading and significant capital inflows. This example can serve as a guide to how the market reacts to similar products.
Forecasts and Prospects
Bloomberg Intelligence analyst Eric Balchunas opined that the capital share of Ethereum-based spot ETFs could be approximately 10% of the volume of Bitcoin funds when they launch in the United States. This suggests the potential significance and impact of this asset class on the digital currency market in the United States.
As such, the SEC's approval of Ethereum spot ETFs represents an important step for the development of the cryptocurrency fund market in the US, opening up new opportunities for investors and strengthening Ethereum's position as a key player in the financial arena.
