SEC greenlights Ethereum Spot ETF: trading takes off
- Tri Huynh Thien
- Jul 24, 2024
- 2 min read
By Trey Huynh July 24 2024
The US Securities and Exchange Commission (SEC) has recently approved the launch of several Ethereum Spot Exchange-Traded Funds (ETF), marking a pivotal moment for ETH users and the crypto industry as a whole.
According to reports, eight Ether Spot ETFs have already been cleared for trading, including industry heavyweights such as Fidelity, Bitwise, Grayscale and iShares (BlackRock.) These ETFs will be available on prominent platforms like NYSE Arca and the Chicago Board Options Exchange.
This has been an arduous process since the SEC has a history of skepticism towards Ethereum and cryptocurrency, in general. In the past they had filed many lawsuits against various crypto platforms and exchanges, some of which were distinguished names in the industry. Also, for the longest time, the SEC had considered Ethereum an unregistered security, casting a shadow on its legitimacy. Their decision to finally clear that up has injected a much needed sense of optimism into the market.
What this means for Ethereum
Speculations are rising but they generally surround a great price hike for Ethereum. Some believe that the asset will break into the $4,000 territory while others estimate a halt at around $3,700. The introduction of these ETFs will expectedly make Ethereum more accessible to a broader range of investors, driving up demand. Initial price charts indicate a notable surge following the approval, with a generally bullish trend despite some anticipated fluctuations.
Ethereum price chart: Coinmarketcap.com July 2024
Ethereum may also see an increase in adoption and use cases, leading to more activities on the network. The Ethereum blockchain, known for its versatile environment housing numerous Web3 projects and decentralized applications (dApps), may now offer even more utility to its users. This could spur further development and innovation within the Ethereum ecosystem.
We’re still in the first week since trading began, but it’s safe to say the market would become more competitive. The approval of ETFs could inspire other cryptocurrencies into pursuing similar regulatory endorsements, possibly causing a chain reaction. On a higher scale, the SEC’s approval could influence other countries to consider comparable actions. While such global shifts may still be years away, for now, the approval of Ethereum ETFs stands as a significant achievement in the crypto space.
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