After a decade of waiting, denying, or at best delaying, the U.S. Securities and Exchange Commission has finally given the green light to nearly a dozen spot Bitcoin ETFs in early 2024.
Their impact on the price of BTC is undeniable as the demand for these products among traditional investors is surging. There is currently an existing exchange-traded fund that tracks the performance of at least one cryptocurrency, so the community is speculating whether there will be any follow-up, especially regarding his ETH.
ETH ETF Application
Many companies inside and outside the cryptocurrency industry want to follow Bitcoin's example and create products that track the performance of the second-largest digital asset. Perhaps his two biggest companies currently filing with the SEC are BlackRock and Fidelity. However, regulators continue to delay decisions on both applications.
Amid recent SEC delays, industry experts have begun to question the agency's motives and compared it to how the watchdog operated before rejecting countless BTC applications over the past decade. As such, overall optimism for ETH ETF applications has begun to wane in recent weeks, despite previous predictions that the European Commission would approve all applications in May 2024.
The latest analysis on the matter suggests that the SEC plans to reject all Spot Ethereum ETF applications due in May.
Impact on ETH price?
While the community continues to speculate as to whether a potential Ethereum ETF will be a huge flop compared to the BTC ETF, we believe that if the SEC indeed rejects all current proposals, ETH's We decided to ask Perplexity, a popular ChatGPT alternative, about what the pricing would be. Interestingly, the AI chatbot believes that whatever the authorities' decision is, it will not have much of an impact on ETH, at least in the short term.
“If the SEC rejects all Spot Ethereum ETF applications, the impact on ETH price may not be as large as initially expected. Analysts and experts believe that whether the ETF is approved or rejected, However, it suggests that it may not have a significant impact on altcoin prices in the short term.
Considering the rejection of BTC ETFs over the past decade, this theory may have some merit. Bitcoin is no longer immune to SEC actions after too many rejections. However, the case of Ethereum is completely different as this asset does not have such a long history with regulators.
Furthermore, once the commission gave the green light to all Bitcoin ETFs, the price of the underlying asset went on a significant roller coaster ride in the weeks that followed. As the demand and inflow increased, the price of BTC also increased. As we saw last week, the opposite effect can also be seen.
