After the approval of the spot ETF, will the Ethereum price surge or fizzle out?

The United States Securities and Exchange Commission (SEC) has finally approved a dozen spot Bitcoin ETFs, marking a significant milestone for the cryptocurrency market in 2024. This approval has sparked a surge in Bitcoin’s price, as traditional investors show increased interest in these products. Major players in the cryptocurrency world, such as Blackrock and Fidelity, are now seeking approval for their ETF applications with the SEC. However, while Bitcoin ETFs are gaining traction, hopes for Spot Ethereum ETF approvals have diminished. Recent reports suggest that the SEC is considering an investigation to potentially classify Ether, the native currency of the Ethereum network, as a security. This investigation has resulted in organizations associated with the Ethereum Foundation receiving subpoenas for detailed documentation and financial records. As a result, applicants such as Hashdex and ARK 21 Shares are in a state of uncertainty, awaiting the SEC’s final decision expected in May. While Bitcoin ETFs have cleared regulatory hurdles, Ethereum ETFs face a more uncertain regulatory landscape. Experts are analyzing the potential impact on Ethereum’s price dynamics amidst ongoing speculation about the fate of Ethereum ETFs. While some dismiss Ethereum ETFs as underwhelming, others remain uncertain about the token’s price movement after the introduction of an ETF. Looking at the immediate impact of the Bitcoin ETF approval on Ether’s price, which surged to its highest level since May 2022, it is reasonable to expect a similar bullish trend if an Ethereum ETF is approved. The approval of an Ethereum ETF would stimulate speculative interest and broaden access for both retail and institutional investors, similar to the Bitcoin ETF. This influx of interest is expected to drive increased demand and contribute to Ethereum’s institutionalization. Regulatory clarity accompanying ETF approval would provide a solid foundation for Ethereum’s continued growth, fostering innovation and boosting investor confidence. Currently, Ethereum is trading at $3,502.58, with a 4.91% decline in the past 24 hours. However, technical indicators show a bullish 89% market sentiment for Ethereum, and the Fear & Greed Index scores at 75. If the Ethereum ETF receives approval, it could reshape the cryptocurrency landscape in 2024. The approval of an Ethereum ETF holds great promise, not only for the token’s price trajectory but also for its broader institutional adoption and the maturation of the cryptocurrency market.