The US SEC has approved Ethereum ETFs shortly after its approval of Bitcoin ETFs. This turns out to be a revolutionary path for the crypto realm.
The approval opens up new paths for the cryptocurrencies and we are about to witness a whole new world of opportunities.
What Happened?
The Securities and Exchange Commission’s approval led to the launch of the first-ever US exchange-traded funds that directly invested in Ether tokens.
Following the approval, around 8 Ethereum ETFs are about to be launched. Now, investors can directly invest in Ether (ETH), the native crypto of the Ethereum blockchain, which is the second largest cryptocurrency in the world.
There are already applications for ETH ETFs from Ark Invest, BlackRock, Invesco, and Fidelity. The approval has granted permission for all these companies to proceed with their projects.
However, it is to be noted that these major players in the industry will need to receive an additional second round of approval before launching their product.
Did Ether Gain Value following the ETH ETF approval by the SEC?
Yes, Ether has gained value since the approval of SEO for Ether ETFs. The anticipation that was up in the air relating to whether the project would get the approval of the SEC already started an upward trend for Ether in the market.
Subsequently, the prices are shooting up and more investors are turning towards Ethereum. Crypto whale activities are also expected to take place in Ether.
The latest reports suggest that there has been a 20% gain in the value of Ether since this Monday alone. When we look at the data from the beginning of 2024, it can be noted that there is a 60% gain until now.
The upward trends in the price of Ether can be viewed as a positive note from the prominent investors and the crypto as a bullish sentiment in the margate with Extreme Greed.
A long waited approval
The major companies in the industry have been requesting the approval of ETH ETF for the past few months. However, the SEC has been silent without giving any hints about their upcoming decision.
Companies such as ArkINvest and VanEck were nearing deadlines for other ETF applications that they had submitted.
It was in the midst of all these that the SEC suddenly responded to the pending applications by providing quick and unpredicted feedback on the matter.
Top responses from the crypto community
The crypto veterans think that the SEC approval of ether ETF is a milestone indeed. However, there is a lack of clarity regarding the second round of approvals which is necessary for the launch of the ether ETFs into the market.
The co-founder of Chain Link, Surrogate Nazarov commented that Ethereum ETF approval was the second largest step towards the future of the crypto industry.
Nazarove continued that all the attention and adoption surrounding the ether ETF proves the long-term thesis that the crypto pioneers have been building around.
He added that this would result in the capital markets becoming the upcoming large source of adoption of the cryptocurrency industry.
He also said that the capital markets would serve as the key force that drives the whole industry to new heights.
Chain Link leader emphasized the potential that the approval has to invite the spotlight on the smart contract of Ethereum and also on its decentralized application capabilities. All these have already started to attract growing interest from many key financial institutions.
He quitted the approval by the SEC as a landmark decision and further added that the SEC could potentially wake a new era for cryptocurrencies and it would act to solidify their integration into the existing structure of the traditional financial markets.
Closing Thoughts
The SEC’s approval of Bitcoin ETFs has resulted in shaping a significant shift in the whole regulatory landscape of crypto assets.
The approval of ether ETFs has come at a moment when others have been executing a rejection regarding the project.
The major companies have requested an appeal on the ETH ETFs and have been waiting for a decision since the beginning of this year.
Since Bitcoin ETFs received the approval, this serves as the second-best regulatory milestone in the history of cryptocurrencies.
