What Impact Will SEC Approval of All Spot Ethereum ETF Applications Have on ETH’s Price?
After a decade of waiting, rejections, and delays, the United States Securities and Exchange Commission (SEC) has finally given the green light to a dozen spot Bitcoin exchange-traded funds (ETFs) in 2024. This approval has had a positive impact on the price of Bitcoin, as traditional investors’ demand for these products has increased.
Several companies in the cryptocurrency industry are now looking to follow Bitcoin’s example, with the two biggest names currently applying for ETFs with the SEC being Blackrock and Fidelity. However, despite previous predictions that the SEC would approve all filings in May 2024, the applications for spot Ethereum ETFs have recently started to wind down.
According to Fortune, the SEC is considering an investigation to classify Ether, the native cryptocurrency of the Ethereum network, as a security. Organizations that have received subpoenas related to this probe have stated that the SEC is demanding documents and financial records concerning their dealings with the Ethereum Foundation. As a result, applicants such as Hashdex and ARK 21 Shares are still waiting for final decisions on their Ethereum ETF proposals in May. While the SEC approved 11 Bitcoin ETFs earlier this year, it appears that Ethereum ETFs may face regulatory hurdles.
Despite this uncertainty, the community continues to speculate on the success rate of Ethereum ETFs compared to Bitcoin ETFs. Therefore, we have decided to outline what would happen to the price of Ethereum if the SEC approves all the current proposals for Ethereum ETFs. In light of the recent SEC delays, industry experts are discussing the potential impact of ETF approval on Ethereum’s price. Some in the community believe that Ethereum ETFs will be a flop, while others are unsure about the token’s price after the introduction of such ETFs.
As we saw, the price of Ether reached its highest level since May 2022 after the approval of the Bitcoin ETF. Therefore, it would not be surprising if the approval of an ETF dedicated to Ethereum also leads to a significant increase in the token’s price.
If an Ethereum ETF receives approval, we can expect to see a significant positive upside in Ethereum’s price in 2024. Similar to the Bitcoin ETF, this increase would be driven by speculative interest and increased accessibility for both retail and institutional investors. This collective response would lead to a surge in demand. The approval of an ETH ETF would mark the institutionalization of the Ethereum network, attracting stable and long-term investment. It would also establish regulatory clarity, providing a solid foundation for Ethereum’s growth and further innovation, and would be powered by increased investor confidence.
Currently priced at $3,502.58, Ethereum has experienced a 4.91% decline in the past 24 hours. However, according to Coinpedia Markets, technical indicators signal a bullish 89% market sentiment towards Ethereum, while the Fear & Greed Index displays a score of 75. If the Ethereum ETF receives the green light, it will undoubtedly be the next big thing for the crypto market in 2024.