Barely three months after approving the first set of Bitcoin ETF applications, the United States Securities and Exchange Commission has finally approved eight spot Ethereum (ETH) exchange-traded funds (ETF) filings. In its announcement, the regulator confirmed the approval of 19b-4 forms for the ETFs filed by eight companies, including Grayscale, Blackrock, Fidelity, and Bitwise amongst others.
Since the start of this week, the entire crypto landscape has been seeing a rise in speculation suggesting the ETH ETF filings will get approval soon. Initially, the SEC never showed interest in engaging the issuers until this week when it asked that they make amendments to their filings and submit again.
This development fueled speculation that the regulator might have had a change of heart. In reaction, the broader crypto market saw a significant surge, with Bitcoin and major altcoins posting substantial gains.
Now, with the final approval, the second largest cryptocurrency by market cap, will see a massive rise in its adoption rate. Nevertheless, issuers are still required to complete their S-1 registration statements before they can start trading their ETF products. While it is unclear how long this mandatory process may take, experts expect everything wrapped up in coming weeks.
Without a doubt, the SEC’s landmark decision on ETH ETF marks the second regulatory wins for the crypto industry this year. Earlier this year, the regulator bowed to pressure by giving its approval to Bitcoin ETF filings.
While it insisted that its approval does not mean it endorses Bitcoin, the decision sent a ripple of excitement into the crypto world. Since its launch, Bitcoin ETF products have experienced substantial inflow of investments.
How ETH ETF Approval may Trigger a Price Rally
Following the news of the approval, Analysts have submitted that Ether could be on the rise. The basis of their analysis is based on the fact that the Ether ETF approval will trigger a huge inflow into the second-largest cryptocurrency.
QCP Capital in one of its analyses on Telegram revealed that Ether could experience a 60% price increase. The price analysis mirrored the reaction of the cryptocurrency market after the approval of Bitcoin ETF.
Then, BTC spiked from $73,000 to $42,000 within two weeks after ETF started trading on January 11. Consequently, as the speculation of the Ether ETF began to intensify, ETH buying activities on centralized and decentralized exchanges have been on the rise.
CryptoQuant, in a report released on Wednesday, disclosed that investors bought more than 10,000 ETH from spot markets on Tuesday. The landmark purchase is the highest-ever ETH recorded since September 2023.
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