SEC approves spot Ethereum ETFs.
The US Securities and Exchange Commission (SEC) has approved spot ETH ETF applications from BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton.
Although the SEC approved the applications of 8 companies, the S-1 forms required for the start of transactions must also be approved. This means that even if spot Ethereum ETF transactions are given the green light, transactions will not start immediately. The regulatory body will next begin negotiations on ETF issuers' S-1 forms. It is not yet clear how long this process will take. Some commentators think it could be weeks before the SEC launches Ethereum ETF trading.
Until this week, there was a strong belief that the SEC would reject Ethereum ETFs. Rumors in the market were that the SEC's communication with issuers was poor, resulting in a reluctance to approve ETFs. However, at the beginning of the week, after the SEC asked for the application forms to be sent back, the general opinion about ETFs suddenly changed. After the announcement of this decision, which was perceived as a surprise in the market, the Ethereum price made a rapid jump of 20%.
While the SEC's decision change was interpreted as an unprecedented situation, some investors commented that the decision could be political.
On the other hand, after the #SEC gave trading approval, it became a matter of curiosity how spot #Ethereum ETFs would perform. Bloomberg ETF analyst Eric Balchunas stated that they do not expect Ethereum ETFs to perform similarly to Bitcoin ETFs. While Balchunas estimates that these #ETFs could raise an average of 10% of their Bitcoin counterparts, he still thinks this figure would be a pretty good result.
Ethereum quickly moved towards $3,900 after first falling to $3,500 after the SEC's ETF approval. After this volatility, ETH, which remained horizontal in the $ 3,800 band, started to move towards $ 3,600 in the first hours of the day.
