$ETH - Ethereum
Theo CryptoPotato
After a decade of waiting, denials, and delays, the U.S. Securities and Exchange Commission finally gave the green light to nearly a dozen spot Bitcoin ETFs in early 2024.
Their impact on BTC prices is undeniable as demand for such products among traditional investors has skyrocketed. Now that there are exchange-traded funds tracking the performance of at least one cryptocurrency, the community speculates whether there will be a follow-up fund, especially with ETH.
ETH ETF applications
Many companies inside and outside the crypto industry want to follow Bitcoin's example and have products that track the performance of the second largest digital asset. Perhaps the two biggest names currently filing with the SEC are BlackRock and Fidelity. However, the regulator continues to delay making a decision on one of its two applications.
Amid the SEC's latest delays, industry experts are starting to question the agency's motives and draw comparisons to how the watchdog operates before rejecting countless applications. BTC during the past 10 years. As a result, the general optimism surrounding ETH ETF registrations began to fade in recent weeks despite previous predictions that the Commission would approve all applications by May 2024.
The most recent analysis on the matter shows that the SEC plans to reject all spot Ethereum ETF applications with a May expiration date.
Impact on ETH price?
While the community continues to speculate whether the potential Ethereum ETF will fail compared to the BTC ETF, we decided to ask Perplexity – the popular ChatGPT alternative – about what will happen to the price of ETH if the SEC actually reject all current proposals. Interestingly, the AI chatbot believes that the agency's decision, whatever it is, will not have a major impact on ETH, at least in the short term.
“If the SEC rejects all spot Ethereum ETF applications, the impact on ETH price may not be as significant as initially anticipated. Analysts and experts say that whether ETFs are approved or rejected, it may not have a significant impact on altcoin prices in the short term.”
This theory may have some validity as the BTC ETF has been rejected over the past 10 years. Bitcoin became immune to SEC actions after so many rejections. However, the case of Ethereum is quite different as the asset does not have a long history with the regulator.
Additionally, after the Commission gave the green light to all Bitcoin ETFs, the price of the underlying asset skyrocketed over the next few weeks. As demand and cash flow increase, so does BTC price. The opposite effect is also visible, as we saw this past week.
