The SEC's approval of an Ethereum ETF is a landmark move for the cryptocurrency industry. The decision has been hailed as a major step forward, positioning Ethereum as the "digital oil" of the cryptocurrency space, similar to Bitcoin's "digital gold" status.
But there is still a gap compared with Bitcoin. On May 24, the total net inflow of Bitcoin spot ETFs was US$252 million, with inflows for 10 consecutive days. Among them, the daily inflow and outflow of Grayscale ETF GBTC were both US$0, BlackRock ETF IBIT had an inflow of US$182 million, and Fidelity ETF FBTC had an inflow of US$43.7083 million.
Big players can change the outcome
Interestingly, with industry giants such as BlackRock ready to promote Ethereum to its broad investor base, the approval is expected to drive mainstream adoption. This development marks a critical moment that has the potential to bring Ethereum closer to the forefront of the public eye.
Two-step approval process
Next up is a two-step process. While exciting, it’s important to note that trading won’t begin immediately. The SEC has approved the listing of these ETFs, but individual ETF registration statements still need to be approved. This two-step process involves listing approval (completed) and product approval (still to be completed). Therefore, actual trading could still take weeks or even months, similar to the approval process for the Bitcoin ETF.
Encryption Impact
Prior to the SEC's announcement, Ethereum's price experienced several fluctuations. It first fell to $3,500, then rose to nearly $3,900 due to rumors of ETF approval, and finally stabilized above $3,800 after confirmation. Despite the good news, Ethereum is still below its all-time high of $4,800 in November 2021, and is currently priced at around $3,700.
Analyst Aeron noted that the approval will bring regulatory clarity, which could help Ethereum reach all-time highs again. In addition, with Ethereum balances on exchanges at their lowest levels, the expected demand for ETFs could further push prices higher.
Looking ahead, Aeron is very optimistic about the future of Ethereum. He predicts that Ethereum’s value could increase 3 to 4 times in the next year and a half, potentially reaching $11,000 to $15,000 per coin. This optimistic outlook highlights the transformative potential of the recent ETF approval.
(Personal opinion, not a recommendation)
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