The US Securities and Exchange Commission (SEC) has authorized the listing of the spot Ethereum ETFs on significant exchanges, including NASDAQ and NYSE, marking a significant milestone for the cryptocurrency industry. The move, which is being hailed as a major advancement, establishes Ethereum as “digital oil” in the cryptocurrency sphere, similar to Bitcoin’s “digital gold.”
However, they are still lagging behind Bitcoin. With ten consecutive days of inflows, the total net inflows into Bitcoin Spot ETFs on May 24 were US$252 million.
A two-step process for authorization
After this, there will be a two-stage process. Whatever the case, it is crucial to understand that trading will not begin right away. The listings of these ETFs have been approved by the SEC, but the registration details of each ETF still have to be approved.
According to Aeron of Altcoin Daily, the rapid acceptance could be politically motivated, with both presidential candidates seeking support from the cryptocurrency community. This quick decision could indicate deliberate measures in an election year. This unexpected decision demonstrates the cryptocurrency sector’s growing political impact.
Where’s the ETH heading?
Analysts estimate that over $500 million will be invested following the approval of an Ethereum ETF, but it may take some time for the price to rise. According to on-chain data, Ethereum may stabilize above $4,000 and perhaps rise to $5,000–$6,000 by August.
Aaron is believes the value of Ethereum could increase three to four times over the next year and a half, potentially reaching between $11,000 and $15,000 per coin. The revolutionary potential of the recent approval of the ETF is highlighted by this optimistic forecast.
Large players can alter the result
Aeron noted that the regulatory clarity brought by this permission could enable Ethereum to reclaim those heights. Additionally, as Ethereum balances on exchanges are at their lowest point, the expected demand for the ETF could push prices even higher.
It is interesting to note that major players in the market, like BlackRock, are ready to introduce Ethereum to their large investor base. This approval is expected to promote widespread adoption. This breakthrough marks a turning point that could bring Ethereum closer to the public’s attention.
Comparing the approval of Bitcoin’s ETF
A turning point for the cryptocurrency industry occurred on January 10 with the approval of a Bitcoin (BTC) ETF. Over the course of the next 16 days, the price of Bitcoin dropped by 21%, but then saw an incredible 92% increase, which shows the market’s volatility and growth potential.
