The US Securities and Exchange Commission (SEC) gave the green light to eight physical Ethereum ETFs despite opposition to related products from GBTC. This decision would be the crucial step in the cryptocurrency market after approval for the first place Bitcoin ETFs.
Ethereum ETF Approval Signals Cryptocurrency Breakthrough
The approval through forms 19b-4 came as a major boost for Ethereum, and it seeks to expand the reach of the ‘Ethereum MainNet.’ However, the issuers require the approval of their S-1 registration statements through a process which, as noted by Bloomberg ETF analyst James Seyffart, has usually been over three months in the past.
Read Also: Serbian Government Meets SEC to Discuss Do Kwon Investigation and Extradition
The interaction with the ETF issuers has been made with no prior approval from the SEC, which has shocked several people. People have come up with numerous theories on how such change could have been instigated, possibly through political influence. Before this, a group of lawmakers from both sides of the political divide had called on the SEC to clear these ETFs, referencing the recent green light afforded to Bitcoin ETF.
Advertisement
The news triggered an upward movement in the price of ETH from $3,675 to $3,856, though it has slightly pulled back to $3,816 at the time of writing this article. Many in the industry have welcomed this, believing it will help fuel growth within the sector.
Sergey Nazarov, the founder of Chainlink, focused on the importance of approval for assets powered by smart contracts. We quote him as saying that approval “draws attention to the ability of smart contracts and decentralized applications ‘dApps,’ as they are often called, as they serve as the backbone of Ethereum. ”
Combined, the launch of these Ethereum ETFs symbolizes a breakthrough for the cryptocurrency industry. It paves the way for higher investment and establishes a pattern that specifies free, further adoption of crypto in ordinary financial systems.
ETH ETF Approval Marks Cryptocurrency Market Milestone
The US SEC’s approval of eight spot Ethereum (ETH) exchange-traded funds (ETFs), including those of BlackRock and Fidelity, is a landmark achievement for the cryptocurrency market. This approval comes after the approval of the first spot Bitcoin ETFs, affirming the alignment of the new financial sector with cryptocurrencies.
This September, both the 19b-4 forms for these ETFs received approval from the SEC and will hence prove to be a breakthrough for Ethereum. However, there is still the issue of an S-1 registration statement for which the issuers require approval, which usually takes more than three months. This has left many asking questions about the circumstances that led to the SEC relaxing its stand and passing the research report, as most had expected it to reject the report, citing political influence.
This approval news alone has brought the ETH price rise from $3,675 to $3,856 as it responded to the news. It used to be much lower at around $1,500, but it has since been around $3,816 at the time of writing this. Still, players in the industry are upbeat about the future of the approvals; such bodies view the approval as positive for the sector.
Read Also: Grayscale Submits Amendment to Ethereum Mini Trust
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.