Ethereum’s price has remained relatively stable despite the recent approval by the US Securities and Exchange Commission (SEC) for spot Ether exchange-traded funds (ETFs) to launch more quickly in the United States. Prior to the SEC’s groundbreaking decision, Ether experienced a 3.4% decline, followed by a 5% recovery shortly after. Currently, Ether is being traded at $3,701, with a 24-hour trading volume of $47.5 billion, according to CoinMarketCap.
On May 23, the SEC granted approval for 19b-4 applications from major financial institutions including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This pivotal approval permits these companies to list and trade spot Ether ETFs on their respective exchanges. Hashdex was the only ETF issuer that did not receive regulatory approval on that day.
However, ETF issuers still have more hurdles to overcome. They must secure the SEC’s approval for their S-1 registration statements before spot Ether ETFs can officially commence trading, a process that may take several weeks or even months.
The SEC’s unexpected move to expedite 19b-4 filings on May 20, with the removal of staking from some applications, has sparked speculation about the reasons behind the swift action. Some believe that political pressure may have influenced the decision, as a bipartisan group of lawmakers had urged the SEC to approve these ETFs prior to the official announcement.
The approval of Ethereum ETFs is considered a significant gesture from the SEC, indicating that Ether may not be classified as a security. Experts in the industry view this approval as a step towards establishing Ether as a commodity-based trust share rather than a security.
Despite these positive developments, there are differing opinions on whether Ether may still be targeted by the SEC in the future. Some believe that the approval of an Ethereum ETF does not necessarily mean that the SEC no longer considers Ether a security, while others are more optimistic about the implications of the approval.
The recent approval of spot Ether ETFs comes after the SEC approved several spot Bitcoin ETF applications in January, marking a milestone for the industry. Industry experts anticipate further growth following this approval, with expectations of a potential price rally for Ether similar to the one seen with Bitcoin earlier in the year.
Overall, the approval of Ethereum ETFs has the potential to attract significant institutional interest and drive further growth in the crypto market. While some experts caution that the price of Ether may not immediately surge, the approval is seen as a positive development that demonstrates maturity in the cryptocurrency market.