Ethereum Surges After Bitcoin ETF Approval
Following the recent approval of multiple spot Bitcoin ETFs, there is growing anticipation that a spot Ethereum ETF could be the next to hit the market. As a result, the price of Ethereum has reached levels not seen since May 2022, currently trading at just over $2,620. Meanwhile, Bitcoin is trading relatively flat, with a 2% increase over the past day.
Spot Ethereum ETF Applications
Several prominent companies, including Ark 21Shares, BlackRock, Fidelity, and Grayscale, have filed applications for a spot Ethereum ETF with the U.S. Securities and Exchange Commission (SEC). Traders are optimistic that an Ethereum ETF could be approved more swiftly compared to the long-awaited Bitcoin ETF.
Potential Approval by May
Bloomberg Intelligence’s ETF analyst Eric Balchunas has stated that there is a 70% chance of an Ethereum ETF being approved by May. This deadline marks the SEC’s final decision on multiple spot Ethereum ETF applications. Balchunas claims to have received information through unofficial channels that suggests spot Ethereum ETFs “will be fine.”
Uncertainty Regarding Ethereum’s Classification
SEC chair Gary Gensler has refrained from clarifying whether Ethereum is considered a security or a commodity by the regulator. However, prior to his role at the SEC, Gensler acknowledged that Ethereum was “sufficiently decentralized” to not qualify as a security. This viewpoint aligns with former SEC Director of Corporate Finance William Hinman’s remarks in June 2018.
Hot Take: Market Optimism Boosts Ethereum Price
The recent approval of spot Bitcoin ETFs has generated excitement and optimism within the crypto market. As a result, the price of Ethereum has surged to levels not seen in several months. Traders are now eagerly anticipating the potential approval of a spot Ethereum ETF, which could provide further momentum to Ethereum’s upward trajectory. With various prominent companies filing applications for an Ethereum ETF, there is growing speculation that it could be approved sooner than expected. This positive sentiment has contributed to Ethereum’s recent price increase and reflects the market’s belief in the future growth and adoption of the cryptocurrency.
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