In a surprising move, the U.S. SEC approved eight applications for spot Ethereum ETFs on Thursday. This decision allows institutional traders to trade Ethereum on Wall Street. It also adds to the credibility of cryptocurrencies.
The SEC uploaded a document announcing its approval of these applications. The document read, “After careful review, the Commission finds that the Proposals are consistent with the Exchange Act and rules and regulations thereunder applicable to a national securities exchange.”
Thursday’s approvals are significant for crypto. It comes just a few months after the SEC approved eleven spot Bitcoin ETF applications. Since then, spot Bitcoin ETFs have seen almost $13 billion in net inflows. The SEC finally approved Ethereum ETH applications following months of back and forth.
Ethereum ETFs are the second crypto-based ETFs approved in the United States. The approved funds include the Grayscale Ethereum Trust, and Bitwise Ethereum ETF. Also, the iShares Ethereum Trust.
Others include Franklin Ethereum ETF, VanEck Ethereum Trust, ARK/21 Shares Ethereum ETF. And Invesco Galaxy Ethereum ETF, Fidelity Ethereum Fund.
These ETFs are not expected to start trading immediately. Crypto experts like James Seyffart believe trading could start weeks from now.
A breakthrough for Ethereum
The SEC’s approval of Ethereum ETFs adds to Ethereum’s mainstream appeal. It also adds to the cryptocurrency’s credibility. A week ago, it seemed unlikely that the SEC would grant its approval.
The approval also puts to rest concerns that the SEC considers Ethereum unregistered. Furthermore, the approval is somewhat an endorsement that Ethereum is not a security.
Spot Ethereum ETFs are different from ETH futures ETFs. With spot ETFs, traditional investors can get exposed to Ethereum. They do not need to hold the asset. Crypto experts predict a massive inflow within the Ethereum ecosystem.
Geoff Kendrick, Standard Chartered Head of Digital Assets Research gave his prediction. He believes there could be an inflow of $15 to $45 billion within the first year. Others believe this approval could finally usher in the expected bull run. So, lots of altcoins could see their prices increase too.
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