According to Matrixport market analysts who spoke to the media recently, a decision on the much-awaited spot for Ethereum ETFs could be announced this week by the U. S. Securities and Exchange Commission (SEC). After getting approval from shareholders, Ethereum can record an increased and impressive hike in its price. The flow of significant events started on May 20 when the SEC asked prospective ETF issuers to resubmit their applications. Notably, three days after the SEC’s initial request, on May 23, the commission approved the 19b-4 filings alongside the S-1 applications from the ETF issuers.
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The reaction of the Ethereum to Market and expectations
As filings for the Ethereum spot ETFs were made initially, the market value of ETH rose massively. This showed a high volatility characterized by a nearly 30% gain in the value of the cryptocurrency in a time frame of only three days, with the cryptocurrency going from a low of $3,050 to $3,943. As for the issuers of Ethereum ETFs, some of them have been green-lighted by the U. S. regulator. However, trading of this investment product persists to be on hold since issuers have not updated their registration statements.
ETH has completely erased all the gains it made in the last week of May, at least in terms of trading in the market, as ether awaits the previous nod to start its listing and trading process. Analysts have predicted that the approval of the SEC was due this month. Despite no action during the past week, Matrixport recommended that the SEC might have postponed the choice because of the July 4 holiday and the subsequent weekend, so the application evaluation week lasted until at least July 8.
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Potential Effect SEC’s Decision on Ether Price
According to Matrixport, if the SEC acts this week and the Ethereum spot ETF starts trading, it would be possible for ETH to recover in price. When writing the article, Ethereum was at $3,039, considerably higher than the $2,826.01 observed on July 5, indicating the rising interest rate. As expected, the SEC’s approval of the Ethereum spot ETF is considered a critical development in the cryptocurrency market.
In conclusion, the market is waiting for the SEC’s decision on the spot Ethereum ETF. Positive results are expected to affirm the cryptocurrency and respond to a significant bounce in the price. The days to come shall be determinative of Ethereum and investors holding the digital currency because the outcome will precede the other markets.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.