In a significant development, the US Securities and Exchange Commission (SEC) has given the green light to the issuance of Spot Ethereum ETFs. This significant decision followed a similar approval for Spot Bitcoin ETFs just five months prior. This paints a picture of increased acceptance of cryptocurrencies, enhancing their accessibility to institutional investors. This step further consolidates the US’s crypto space, with Bitcoin and Ethereum now both included in the ETF market.
The crypto market watched closely as the SEC first approved Spot Bitcoin ETFs earlier this year, speculating on which digital currency would be next. Ethereum, being the second-largest cryptocurrency, was the natural candidate, although skeptics doubted if the SEC would grant approval. However, the winds of change blew in mid-May when Bloomberg upped the approval odds to 75% from the previous 25%, setting the stage for eager anticipation in the market.
Now, the long-waited approval is here, with the SEC greenlighting all Spot Ethereum ETFs. This key decision makes the US home to crypto-based ETFs for the world’s two most significant digital assets, reflecting a broader shift in the country’s view on cryptocurrencies. Applications for Ether-based ETFs have flooded in from various issuers, with the most notable ones being VanEck, ARK21 Shares, Hashdex, Invesco Galaaxy, Franklin Templeton, Fidelity, and BlackRock, the world’s largest asset manager.
Looking ahead, the SEC needs to approve the S-1 forms before the issuers can begin trading. These forms are essential for offering new securities publicly. Once approved, Ethereum, much like Bitcoin, is expected to enjoy a significant boost. Experts are predicting a similar effect as was seen with Bitcoin, which hit a record high within three months of its ETF approval. This optimism is reflected in Ethereum’s price, which has already seen a nearly 30% increase in anticipation of the ETF.