SEC Approves Spot Ethereum ETFs Amidst Market Reactions
On May 23, 2024, the U.S. Securities and Exchange Commission (SEC) approved the sale of spot Ethereum Exchange-Traded Funds (ETFs) in the United States. This decision marks a significant milestone for the cryptocurrency market.
Interestingly, Gary Gensler, the Chairperson of the SEC, did not vote in favor of the Ethereum ETF approval. However, the majority vote carried the decision. This is in stark contrast to the approval of the Bitcoin ETF (BTCETF), where Gensler voted in favor of (BTCETF) but never forgot to issue a disclaimer highlighting the inherent risks for future BTCETF investors, emphasizing that his approval did not eliminate these risks.
Notably, the BTCETF approval and its trading commencement occurred on the same day. In contrast for Ethereum ETFs, it may take weeks or even months before the trading of the newly approved Ethereum ETFs begins. This delay could be a contributing factor to the recent "sell the news" phenomenon observed in the Ethereum market.
Stay tuned for a detailed chart analysis of ETHUSDT/ETHUSDT.P in my next post.
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