- The United States SEC has finally approved the spot Ethereum ETF application, ending a period of uncertainty.
- This approval marks a significant milestone for the cryptocurrency market, particularly for Ethereum.
- Market reactions have been mixed, with some analysts predicting a surge in Ethereum’s price.
The SEC’s approval of the spot Ethereum ETF could be a game-changer for the cryptocurrency market, potentially driving significant price movements and increased investor interest.
Approval Despite Massive Doubts
Until now, top Bloomberg ETF Analysts Eric Balchunas and James Seyffart have maintained a positive disposition on the likelihood of approval. Prior to the approval confirmation, Balchunas noted that while there was no chatter to hold onto yet, he claimed that two people on X had revealed that the applications were denied.
With silence from the SEC and the two news bearers not revealing their sources, it became difficult to make a forecast. However, giving a perspective on the trend, Balchunas noted that the delay was not out of place. According to him, the Trading & Markets Division at the SEC was informed of the potential plans to approve at the 11th hour.
UPDATE: there is no update yet. We waiting to hear something. Saw two dif ppl on here claiming it is delayed (without saying their source) till later tonight, but we can’t confirm this with anyone yet. That’s all we know rn. — Eric Balchunas (@EricBalchunas) October 23, 2024
The Bloomberg ETF Analyst said it is possible that the Trading & Markets has prepared rejection letters for VanEck’s offering. If this hypothesis is the case, which is hard to confirm, working back toward approval apparently took time.
The digital currency ecosystem, particularly the crypto supporters on X, are very passionate and require proper management since anticipation leading to the approval was very high.
Crypto Market Response
The tension in the crypto ecosystem regarding the spot Ethereum ETF products seeped to the prices of cryptocurrencies. At the time of writing, Bitcoin (BTC) has dropped by 2.34% to $67,770 to lead the current market reversal.
Ethereum is still managing its earlier recorded growth. The coin is up 2.89% to $3,873.74, however, its current price is down from its 24-hour high of $3,943.55. As the digital currency in the spotlight at the moment, it remains to be seen how Ethereum’s price will react to any potential decision from the SEC.
With the approval, the price of the coin might retest its All-Time High (ATH) at $4,891.70. Had the SEC rejected the offerings, it might also derail its growth and fuel a price drop back to the $3,000 support.
Conclusion
The SEC’s approval of the spot Ethereum ETF is a landmark event that could significantly impact the cryptocurrency market. While the immediate market response has been mixed, the long-term implications for Ethereum and other digital assets are profound. Investors and market watchers will be keenly observing how this development influences market dynamics and regulatory approaches in the future.
