Spot Ethereum exchange-traded funds (ETFs) are now available to investors in the United States of America after regulatory approval. The United States Securities and Exchange Commission (SEC) recently gave approval to the investment firms that filed for the Ether ETFs.Â
By that, investors can now enjoy easy access to the second-largest cryptocurrency through the investment instrument. As revealed, the regulator approved applications from top investment firms like 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, Invesco Galaxy, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
The approval came after the SEC on numerous occasions directed applicants to edit their registration statements. Despite giving applicants approval of 19b-4 forms in May, a segment of the crypto community was still doubting if the regulator would finally approve the applications.
Meanwhile, the doubts emanated from the lack of engagement between the regulator and the issuers. Their hopes dipped further when the meetings between the SEC officials and the applicants failed to produce a positive result.
Don’t forget that the issuers started filling their applications for spot Ether ETFs in September 2023. However, the approval of the 19b-4 forms in May was surprising. Explaining the rationale behind the approval of the form, in an interview with Reuters in June, SEC boss, Gary Gensler disclosed that the Grayscale verdict changed his opinion on the approval of the Ether ETFs.
More so, the approval of the Ether ETFs is another landmark achievement in the quest for the global adoption of cryptocurrency. Lately, the crypto landscape has recorded a massive influx of institutional investors which birthed a growing synergy between the traditional market and the virtual assets sector.
How The Ether ETFs May Motivate An Increase In the Price of Ethereum
Recall that in January, the SEC approved spot Bitcoin ETFs. The approval spiked massive attention on the crypto market as the launch became the most successful one any exchange-traded product has ever enjoyed. Within just two months of launching, the price of BTC skyrocketed which pushed it to a new all-time high.
Between January and March, BTC recorded a massive price rally of more than 58%. By that, experts predicted that the approval of the Ether ETFs can also trigger a similar increase in the price of Ethereum. According to the analysts, the approval can push Ether near the $6,500 price benchmark.
Still, they indicated that Ether ETFs may not record similar success to what Bitcoin ETFs received. Additionally, the experts opined that in its first year of launching, the Ether ETFs could see an inflow of $15 to $20 billion.
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