The culmination of a tumultuous journey has finally arrived, as the US Securities and Exchange Commission (SEC) has approved the issuance of Spot Ethereum ETFs. Indeed, the decision arrived just five months after the agency granted similar approval to the Spot Bitcoin ETFs to start the year.
The decision marks the approval of the country’s second crypto-based ETF. Moreover, it represents a monumental shift in the overall accessibility of the second-largest cryptocurrency to institutional investors.
Also Read: SEC Chair Gary Gensler: ‘Stay Tuned’ on Ethereum ETF Decision
Spot Ethereum ETFs Approved by SEC
Following the approval of Spot Bitcoin ETFs at the start of 2024, the market anticipated what cryptocurrency could be next. Naturally, all eyes are directed toward Ethereum. Although it appears likely, the overall sentiment of the SEC has diminished optimism that such an approval could take place.
That changed significantly at the start of May’s second to last week. Seemingly out of nowhere, Bloomberg increased the approval odds from 25% to 75%. Thereafter, the market began anticipating the impending arrival of the Ethereum-based investment offering.
Now, that anticipation has been rewarded as the SEC has approved all Spot Ethereum ETFs. The landmark decision means that the United States now features crypto-based ETFs for the two most prominent digital assets in the world. Moreover, it is a critical part of a greater transition for the country’s perspective on the assets.
Also Read: Top 3 Cryptocurrencies To Buy For 5X Gains In Anticipation Of Ethereum ETF Approval
Conversely, applications for the Ether-based ETFs have been submitted by a plethora of issuers. Specifically, VanEck, ARK21 Shares, Hashdex, Invesco Galaaxy, Franklin Templeton, Fidelity, and the world’s largest asset manager, BlackRock. Of those firms, VanEck faced the most immediate approval deadline.
Now, all eyes are on how the situation could affect the market as a whole. Bitcoin’s offering led the asset to reach an all-time high in just three months. Many experts predict similar developments for Ethereum, with building anticipation of the ETF leading the asset to increase almost 30% over the last 7 days, according to CoinMarketCap.