After a decade of expectations, denials, and delays, the U.S. Securities and Exchange Commission (SEC) has finally approved more than a dozen spot Bitcoin ETFs, marking a key milestone for the crypto market in 2024. This long-awaited approval sent Bitcoin prices soaring due to increased interest from traditional investors eyeing these products.
As Bitcoin ETFs pave the way, major crypto companies such as BlackRock and Fidelity are actively seeking approval for their ETF applications with the SEC. However, expectations for Spot Ethereum ETF approval have faded, contrary to previous predictions that expected SEC approval by May 2024.
Questions about the current status of Ethereum
A recent report from Fortune suggests that the SEC is considering an investigation that could potentially classify Ether, the native currency of the Ethereum network, as a security. As a result of this investigation, organizations associated with the Ethereum Foundation received subpoenas requesting detailed documents and financial records.
As a result, applicants such as HashDex and ARK 21Shares are left in limbo as they await 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
to understand Impact of ETFs
As speculation continues about the fate of the Ethereum ETF, industry experts are analyzing the potential impact on Ethereum price trends. Opinions are mixed, with some dismissing the Ethereum ETF as underwhelming, while others remain uncertain about the token's price movement after the ETF's introduction.
Looking back at the immediate impact of Bitcoin ETF approval on Ether prices, which soared to their highest since May 2022, it is reasonable to expect a similar bullish trend following Ethereum ETF approval. The approval of an Ethereum ETF could be the catalyst for a significant rise in Ethereum price in 2024.
Also read: April's most anticipated crypto events revealed: Here's what's coming
Waiting for institutionalization
Similar to the Bitcoin ETF, approval of the Ethereum ETF will stimulate speculative interest and expand access for both retail and institutional investors. This influx of interest is expected to increase demand and be an important step towards the institutionalization of Ethereum.
The regulatory clarity that comes with ETF approval will provide a solid foundation for Ethereum's continued growth, fostering innovation, and increasing investor confidence.
Ethereum price analysis
According to Coinpedia Markets, Ethereum is trading at $3,502.58, down 4.91% in 24 hours. Nevertheless, technical indicators indicate that market sentiment towards Ethereum is 89% bullish, with a Fear & Greed Index score of 75. If approved, the Ethereum ETF could reshape the crypto world by 2024.
The approval of the Ethereum ETF holds great promise not only for the token's price trajectory, but also for broader institutional adoption and the maturation of the cryptocurrency market.
Will Ethereum follow Bitcoin? Please tell me what you think.
