In a landmark move for the cryptocurrency industry, the United States Securities and Exchange Commission (SEC) has approved the spot listing of an Ethereum ETF on major exchanges such as the NASDAQ and NYSE. Hailed as a major step forward, the decision positions Ethereum as the “digital oil” of the cryptocurrency industry, rivaling Bitcoin's status as “digital gold.”
However, it is still lagging behind Bitcoin. On May 24, Bitcoin Spot ETFs saw net inflows totaling $252 million, marking the 10th consecutive day of inflows. Grayscale ETF GBTC had daily inflows and outflows of $0.00, Blackrock ETF IBIT had inflows of $182 million, and Fidelity ETF FBTC had inflows of $43,708,300.
Big companies change outcomes
Interestingly, industry giants like BlackRock are ready to promote Ethereum to their broader investor base, with the approval expected to drive mainstream adoption. This development marks a pivotal moment and could bring Ethereum closer to the forefront of public attention.
Two-step approval process
What follows next is a two-step process. Excitement aside, it's important to note that trading won't begin immediately. While the SEC has approved these ETFs for listing, the individual ETF registration statements still require approval. This two-step process includes both completed listing approval and pending product approval. As a result, actual trading could still be weeks or even months away, which is similar to the approval process for the Bitcoin ETF.
Aeron of Altcoin Daily suggests that the sudden endorsement may be politically motivated, with both presidential candidates seeking the support of the crypto community. The quick and somewhat unexpected decision may reflect a strategic move in an election year, signaling the crypto sector's growing influence in the political arena.
The impact of cryptocurrencies
Prior to the SEC announcement, Ethereum prices fluctuated wildly, initially dropping to as low as $3,500 before surging to nearly $3,900 on rumors of ETF approval, and finally settling above $3,800 after approval. Despite the good news, Ethereum remains below its all-time high of $4,800 in November 2021, with a current price of around $3,700.
Aron noted that the approval could provide regulatory clarity and help Ethereum reach new highs again, and with Ethereum balances on exchanges at their lowest, expected demand from ETFs could drive the price even higher.
Looking ahead, Aaron is very optimistic about Ethereum's future. He predicts that Ethereum's value could increase 3-4x over the next year and a half, reaching $11,000-15,000 per coin. This bullish outlook highlights the transformative potential of its recent ETF approval.
