A decade of waiting, denials, and delays ended when the U.S. Securities and Exchange Commission finally waved the green flag for 12 spot Bitcoin ETFs starting in 2024. The impact of these approvals has been positive for the price of Bitcoin, as demand from traditional investors for these products has increased.
Many companies in the cryptocurrency industry are hoping to follow Bitcoin's example, and the two largest companies currently filing ETFs with the SEC are Blackrock and Fidelity. Recently, Spot Ethereum ETF applications began to wind down despite previous predictions that the European Commission would approve all applications in May 2024.
SEC ETF Approval and Impact on ETH Price
Fortune reported that the SEC is considering an investigation into classifying Ether, the Ethereum network's native cryptocurrency, as a security. Organizations that received subpoenas in connection with this investigation said the SEC is requesting documents and financial records related to their transactions with the Ethereum Foundation. With the SEC hesitant to approve Spot Ether ETFs, applicants such as HashDex and ARK 21Shares will be waiting for a final decision in May. The SEC approved 11 Bitcoin ETFs earlier this year, but it appears Ethereum ETFs may face regulatory hurdles.
But as the community continues to speculate about the success rate of Ethereum ETFs compared to Bitcoin ETFs, we write down details on what will happen to the price of ETH if the SEC approves all current proposals for ETFs for ETH. I decided to. Amid recent SEC delays, industry experts talk about the potential impact of ETH ETF approval on Ethereum price. On the one hand, the community continues to call the potential Ethereum ETF a failure, but on the other hand, there are doubts about the price of the token after the emergence of the ETH ETF.
As we remember, after the approval of the Bitcoin ETF, the price of Ether soared to its highest level since May 2022. It would not be surprising to see the token price jump with the approval of an Ethereum-only ETF.
If the Ethereum ETF is approved, we could definitely witness a significant positive increase in Ethereum price in 2024. Similar to BTC ETFs, this will be driven by increased speculative interest and accessibility for both retail and institutional investors. This collective response will cause a surge in demand. An approved ETH ETF will mark the institutionalization of the network and attract stable long-term investment. Regulatory clarity will be established, providing a solid foundation for Ethereum's growth and further innovation, driven by increased investor confidence.
Ethereum price is currently $3,502.58, indicating a drop of 4.91% in the last 24 hours. According to Coinpedia Markets, technical indicators indicate that market sentiment towards Ethereum is 89% bullish, with a Fear & Greed Index score of 75. If the Ethereum ETF gets the green light, it will definitely be the next big thing for Ethereum. The fate of virtual currency in 2024.
