- The U.S. SEC has approved all the applications for ETH spot ETF filed before it.
- This approval has come with a series of anticipated impacts on the broader cryptocurrency market.
In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) approved eight applications for spot Ethereum [ETH] exchange-traded funds (ETFs) on 23rd May.
The regulator approved 19b-4 forms for the ETF applications filed by BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton.
Before this week, it appeared that the SEC was unlikely to approve the Ethereum ETFs due to a lack of communication with issuers. However, this changed earlier this week when the SEC began engaging with issuers and requested the submission of 19b-4 forms.
This approval does not, however, mean that spot ETH ETF will immediately become tradable. In a post on X (formerly Twitter), Bloomberg ETF expert James Seyffart noted that ETF issuers must get their S-1 forms approved.
On the timeline for this, Seyffart said:
“Typically, this process takes months. Like up to 5 months in some examples, but Eric Balchunas and I think this will be at least somewhat accelerated. Bitcoin ETFs were at least 90 days. “
Now that Ethereum ETF has been approved…
Just like with Bitcoin [BTC] spot ETF, the approval of ETH ETF is expected to lead to substantial capital inflows.
According to a Citi analysis, net inflows into BTC spot ETFs totaled $13 billion between 4th January, when they were approved, and 20th May.
These inflows led to a surge in BTC’s price, pushing it to a new all-time high of $73,750 by 14th March. This suggested that the coin recorded a 6% price increase per $1 billion inflow.
If similar market-cap-adjusted flows are applied to ETH, Citi estimates that inflows could range between $3.8 billion and $4.5 billion, potentially driving ETH prices up by 23%-28%.
According to CoinMarketCap’s data, ETH exchanged hands at $3,798 at press time. A 28% rally in value would cause it to exchange hands at $4,861.
This would represent a price level still below its all-time high of $4,891, which the leading altcoin recorded three years ago.
Some analysts believe that the spot ETF approval will push ETH’s price past its current all-time high.
Ethereum ETF to send ETH to $10,000?
In a recent interview with Cointelegraph, Andrey Stoychev, the head of prime brokerage at Nexo, opined that ETF approvals may push ETH’s price to $10,000 by the end of the year.
Stoychev said,
“ETH ETFs in the USA and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF.”
Further, there is an ongoing debate about whether ETH spot ETF approval would result in an uptick in staking rewards on the Ethereum network.
According to Matthew Sigel, the head of Digital Assets at VanEck, yields across staking protocols will soar as ETH moves from these protocols into these ETFs.
However, this shift could have security implications for the broader Ethereum ecosystem. If ETH stakers continue to withdraw their previously staked coins and move them to the newly approved ETFs, it could weaken the security of the Ethereum network.
Security on the Ethereum network relies on staked coins. Less staked ETH could mean fewer validators securing the network, making it more vulnerable to attacks.
On the other hand, some believe that this would not be a non-issue, arguing that ETH ETF may not deliver enough returns to investors to entice stakers to move their coins from staking protocols.
In a recently published report, CCData Research noted:
“Hypothetically, if you had opened a 1000 ETH position on January 1st, 2023, with an ETF provider, instead of holding native Ether, which accrues staking rewards, you would have missed out on gains of over $200,000.”
Regarding the impact of this approval on the general cryptocurrency market, broker, Bernstein, in a recent report it sent to its client, had opined that the Biden administration might adopt a more lenient attitude towards crypto in anticipation of the November Presidential Elections.
Hence, the regulator’s approval of the ETH spot ETF signifies a positive shift in its stance on the crypto sector.
Is your portfolio green? Check out the ETH Profit Calculator
The market in the past 24 hours
After the news of the approval broke, ETH’s price climbed to a high of $3993 before witnessing a 5% correction, causing it to exchange hands at $3,798 at press time.
This price plunge led to significant liquidations of long ETH positions, totaling $92 million, according to Coinglass data.
Source: Coinglass
- The U.S. SEC has approved all the applications for ETH spot ETF filed before it.
- This approval has come with a series of anticipated impacts on the broader cryptocurrency market.
In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) approved eight applications for spot Ethereum [ETH] exchange-traded funds (ETFs) on 23rd May.
The regulator approved 19b-4 forms for the ETF applications filed by BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton.
Before this week, it appeared that the SEC was unlikely to approve the Ethereum ETFs due to a lack of communication with issuers. However, this changed earlier this week when the SEC began engaging with issuers and requested the submission of 19b-4 forms.
This approval does not, however, mean that spot ETH ETF will immediately become tradable. In a post on X (formerly Twitter), Bloomberg ETF expert James Seyffart noted that ETF issuers must get their S-1 forms approved.
On the timeline for this, Seyffart said:
“Typically, this process takes months. Like up to 5 months in some examples, but Eric Balchunas and I think this will be at least somewhat accelerated. Bitcoin ETFs were at least 90 days. “
Now that Ethereum ETF has been approved…
Just like with Bitcoin [BTC] spot ETF, the approval of ETH ETF is expected to lead to substantial capital inflows.
According to a Citi analysis, net inflows into BTC spot ETFs totaled $13 billion between 4th January, when they were approved, and 20th May.
These inflows led to a surge in BTC’s price, pushing it to a new all-time high of $73,750 by 14th March. This suggested that the coin recorded a 6% price increase per $1 billion inflow.
If similar market-cap-adjusted flows are applied to ETH, Citi estimates that inflows could range between $3.8 billion and $4.5 billion, potentially driving ETH prices up by 23%-28%.
According to CoinMarketCap’s data, ETH exchanged hands at $3,798 at press time. A 28% rally in value would cause it to exchange hands at $4,861.
This would represent a price level still below its all-time high of $4,891, which the leading altcoin recorded three years ago.
Some analysts believe that the spot ETF approval will push ETH’s price past its current all-time high.
Ethereum ETF to send ETH to $10,000?
In a recent interview with Cointelegraph, Andrey Stoychev, the head of prime brokerage at Nexo, opined that ETF approvals may push ETH’s price to $10,000 by the end of the year.
Stoychev said,
“ETH ETFs in the USA and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF.”
Further, there is an ongoing debate about whether ETH spot ETF approval would result in an uptick in staking rewards on the Ethereum network.
According to Matthew Sigel, the head of Digital Assets at VanEck, yields across staking protocols will soar as ETH moves from these protocols into these ETFs.
However, this shift could have security implications for the broader Ethereum ecosystem. If ETH stakers continue to withdraw their previously staked coins and move them to the newly approved ETFs, it could weaken the security of the Ethereum network.
Security on the Ethereum network relies on staked coins. Less staked ETH could mean fewer validators securing the network, making it more vulnerable to attacks.
On the other hand, some believe that this would not be a non-issue, arguing that ETH ETF may not deliver enough returns to investors to entice stakers to move their coins from staking protocols.
In a recently published report, CCData Research noted:
“Hypothetically, if you had opened a 1000 ETH position on January 1st, 2023, with an ETF provider, instead of holding native Ether, which accrues staking rewards, you would have missed out on gains of over $200,000.”
Regarding the impact of this approval on the general cryptocurrency market, broker, Bernstein, in a recent report it sent to its client, had opined that the Biden administration might adopt a more lenient attitude towards crypto in anticipation of the November Presidential Elections.
Hence, the regulator’s approval of the ETH spot ETF signifies a positive shift in its stance on the crypto sector.
Is your portfolio green? Check out the ETH Profit Calculator
The market in the past 24 hours
After the news of the approval broke, ETH’s price climbed to a high of $3993 before witnessing a 5% correction, causing it to exchange hands at $3,798 at press time.
This price plunge led to significant liquidations of long ETH positions, totaling $92 million, according to Coinglass data.
Source: Coinglass
clomid one fallopian tube where to get generic clomid can you get generic clomid without a prescription how can i get cheap clomiphene no prescription clomid buy order clomid without rx clomiphene medication uk
This is a keynote which is in to my callousness… Many thanks! Faithfully where can I lay one’s hands on the phone details an eye to questions?
More articles like this would frame the blogosphere richer.
purchase azithromycin online – sumycin 250mg pills buy flagyl 400mg
semaglutide 14 mg cost – buy rybelsus 14mg sale buy generic periactin 4mg
buy motilium without prescription – order generic sumycin 250mg buy flexeril pill
order nexium 40mg online – https://anexamate.com/ esomeprazole 40mg uk
buy medex without prescription – blood thinner losartan 50mg usa
meloxicam 7.5mg uk – https://moboxsin.com/ mobic 7.5mg without prescription
prednisone oral – https://apreplson.com/ buy prednisone 40mg online cheap
male ed pills – buy ed pills cheap best erection pills
cheap amoxicillin pills – amoxicillin canada amoxil cheap
buy diflucan 200mg sale – flucoan buy generic diflucan
order cenforce – https://cenforcers.com/ cenforce 50mg over the counter
buying cialis online safely – ciltad gn cialis experience forum
cialis online with no prescription – strongtadafl cialis dapoxetine
order zantac online cheap – on this site generic zantac 300mg
buy viagra generic canada – is it legal to order viagra from canadian how to buy viagra or cialis
This is a theme which is virtually to my verve… Diverse thanks! Quite where can I notice the connection details due to the fact that questions? buy cheap generic nolvadex
With thanks. Loads of erudition! buy lasix tablets
Thanks on putting this up. It’s evidently done. https://ursxdol.com/levitra-vardenafil-online/
Thanks on putting this up. It’s well done. https://prohnrg.com/product/omeprazole-20-mg/
This is the compassionate of writing I positively appreciate. https://aranitidine.com/fr/ciagra-professional-20-mg/
I couldn’t resist commenting. Adequately written! https://ondactone.com/spironolactone/
This is the gentle of literature I rightly appreciate.
https://doxycyclinege.com/pro/topiramate/
This is the gentle of criticism I rightly appreciate. http://zqykj.cn/bbs/home.php?mod=space&uid=302440
purchase forxiga – janozin.com purchase forxiga online cheap
cheap xenical – site buy orlistat 60mg online cheap
I couldn’t resist commenting. Warmly written! http://www.kiripo.com/forum/member.php?action=profile&uid=1193188