#alt #ape Why Is Ethereum Price Dropping After ETH ETF Approval? Potential Impact on Bitcoin (BTC) and A...
The price of Ethereum (ETH) has experienced a major decline, contrary to expectations of a bullish rally, following the approval of various Ethereum exchange-traded fund (ETF) applications by the US Securities and Exchange Commission (SEC). This unexpected price drop has confused many investors and led to concern about its effects on the broader cryptocurrency market.
On May 23, the SEC approved rule 19b-4 forms for eight Ethereum ETF applications submitted by leading firms including BlackRock, Fidelity, Grayscale, ARK Invest, VanEck, Invesco Galaxy, and Franklin Templeton. This landmark decision was seen as a significant step for the cryptocurrency industry as it effectively classifies Ethereum as a commodity rather than a security.
Despite the positive news, Ethereum price closed in the red yesterday and the downward trend may continue today. This counterintuitive price action has raised doubts and sparked controversy among market analysts and industry experts. Kyle Chassé, a popular cryptocurrency analyst, offered valuable insight into the potential reasons behind the Ethereum price drop:
Delegated Powers and Political Basis
The SEC's approval was granted under "jurisdictional authority" by the Division of Trading and Markets, which means a commissioner can appeal the decision within the next 10 days, according to Chassé. This process suggests an attempt to avoid a formal vote due to potential political ramifications
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