Ether Soars 26% Amid SEC’s Shocking Green Light for Spot ETH ETFs

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As a seasoned crypto investor with years of experience in this volatile market, I can’t help but feel elated and excited by the recent SEC approval of spot Ethereum ETFs. This regulatory pivot has ignited a surge of speculative interest in Ether, leading to its largest weekly gain since the 2021 crypto bull market.

The surge of curiosity towards Ether has grown significantly following the SEC’s unexpected approval of exchange-traded funds (ETFs) based on this digital asset in the US.

Exciting news! The Securities and Exchange Commission (SEC) has given the green light to Ethereum-backed spot ETFs. This is a significant turn of events, making it officially real. Kudos to @PhoenixTrades_ for sharing this development.

— James Seyffart (@JSeyff) May 23, 2024

The shift in regulatory stance led to a notable 26% surge in Ether’s worth during the last week, representing the most considerable weekly growth observed since the 2021 cryptocurrency market boom, as indicated by Bloomberg’s data analysis.

As an analyst, I can say that the impressive performance of US-listed Bitcoin ETFs since their launch in January, amassing a total of $59 billion in assets, is certainly encouraging news for investors. However, when it comes to Ether, its less established reputation compared to Bitcoin makes anticipating investor interest a more complex proposition.

As an analyst, I would put it this way: Instead of physically holding Ether tokens, investing in Ether ETFs means you won’t be participating in staking processes that provide rewards for securing the Ethereum blockchain. The absence of this feature might decrease the attractiveness of these funds for some potential investors.

The SEC still needs to grant additional approvals for companies such as BlackRock Inc. and Fidelity Investments to introduce these products into the market. However, the exact timeframe for these approvals is yet to be determined.

The SEC’s approval of registration statements for ETF issuers is still pending, leaving the approval process incomplete. Although there isn’t a definitive timeline, industry insiders anticipate that several issuers will introduce their products once they secure approval. However, it’s likely that the SEC’s corporate finance division will ask for modifications and improvements to these statements in the near future.

We plan on incorporating this point shortly. The usual timeline for such processes is around five months or more in certain cases. However, Eric Balchunas and I believe that we may be looking at a somewhat expedited timeline for the approval of #Bitcoin ETFs. Previous applications took a minimum of 90 days to be decided upon. We’ll have more information soon.

— James Seyffart (@JSeyff) May 23, 2024

At 10:10 a.m. UTC on May 27, Bitcoin’s price hovers around $68,496, representing a 0.9% decrease over the last 24 hours. Conversely, Ether is currently priced at approximately $3,902, marking a 2.6% increase within the same timeframe.

Based on a Bloomberg News report, Chris Weston, the Head of Research at Pepperstone Group, remarked that Ether’s risk trend points upward. In his statement, he advised viewing dips as potential purchasing chances. The Deribit trading platform data reveals that the most significant bullish option wagers predict Ether surpassing $5,000. Ether reached its highest price to date on November 10, 2021, at $4,878.

The Bloomberg analysis noted that the difference between the T3 Ether Volatility Index, representing anticipated 30-day price changes based on options data, and its Bitcoin counterpart has grown to its largest since early 2023. This observation implies that market speculators foresee greater price instability for Ether compared to Bitcoin.

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2024-05-27 13:26