After a decade of anticipation, rejections, and delays, 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 long-awaited approval has led to a surge in Bitcoin’s price, driven by increased interest from traditional investors eyeing these products.
With the Bitcoin ETFs paving the way, major players in the cryptocurrency world like Blackrock and Fidelity are actively seeking approval for their ETF applications with the SEC. However, hopes for Spot Ethereum ETF approvals have dwindled, contrary to earlier projections expecting SEC approval by May 2024.
Ethereum’s Status in Question
Recent reports from Fortune suggest that the SEC is contemplating an investigation to potentially classify Ether, the native currency of the Ethereum network, as a security. This investigation has led organizations associated with the Ethereum Foundation to receive subpoenas requesting detailed documentation and financial records.
As a result, applicants such as Hashdex and ARK 21 Shares find themselves in limbo, awaiting the SEC’s final decision expected in May. While Bitcoin ETFs have overcome regulatory hurdles, Ethereum ETFs face an uncertain regulatory landscape.
Read More: ConsenSys Makes Strong Case for Ethereum ETF, Citing Security Edge
Understanding the ETF Impact
Amid ongoing speculation about the fate of Ethereum ETFs, industry experts are analyzing the potential impact on Ethereum’s price dynamics. Opinions vary, with some dismissing Ethereum ETFs as underwhelming while others remain uncertain about the token’s price movement post-ETF introduction.
Looking back at the immediate impact of the Bitcoin ETF approval on Ether’s price, which surged to its highest level since May 2022, it’s reasonable to anticipate a similar bullish trend upon Ethereum ETF approval. Approval of an Ethereum ETF could serve as a catalyst for significant upward movement in Ethereum’s price in 2024.
Also Read: April’s Most Anticipated Crypto Events Revealed: Here’s What’s in Store
Institutionalization Awaits
Similar to the Bitcoin ETF, approval of an Ethereum ETF would stimulate speculative interest and broaden access for both retail and institutional investors. This influx of interest is expected to drive increased demand, marking a significant step towards Ethereum’s institutionalization.
Regulatory clarity accompanying ETF approval would provide a solid foundation for Ethereum’s continued growth, fostering innovation and boosting investor confidence.
Ethereum Price Analysis
According to Coinpedia Markets, Ethereum is trading at $3,502.58, with a 4.91% decline within a 24-hour window. Despite this, technical indicators show a bullish 89% market sentiment for Ethereum, with the Fear & Greed Index scoring at 75. Should the Ethereum ETF receive approval, it could reshape the crypto landscape in 2024.
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.
Will Ethereum follow Bitcoin’s lead? Tell us what you think.
Source: https://coinpedia.org/news/what-will-happen-to-eths-price-if-the-sec-approves-all-spot-ethereum-etf-applications/