Ethereum ETF Listing: A Big Decision from the SEC
In the second major milestone of the year, the U.S. Securities and Exchange Commission (SEC) has given the green light for the listing of an Ethereum exchange-traded fund (ETF) in the United States.
On May 23, the SEC approved 19b-4 filings submitted by VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. The decision allows spot Ethereum ETFs to be listed and traded on their respective exchanges, despite speculation as to whether the SEC would label Ethereum (ETH) a security.
Although the 19b-4 filing has been approved, ETF issuers still need the SEC to sign their respective S-1 registration statements before spot Ethereum ETFs can officially begin trading. According to industry insiders, this may take days, weeks or even months. It is reported that the SEC instructed applicants to speed up the 19b-4 filing process on May 20, among which the cancellation of the mark-to-market is the most eye-catching amendment.
The SEC's approval of the bill comes a day after members of the U.S. House of Representatives voted in favor of legislation that many believe will provide clearer regulation for the cryptocurrency industry. The 21st Century Financial Innovation and Technology Act would clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC), but still needs to be passed by the Senate and signed into law.
Four and a half months before the approval of the spot Ethereum ETF, the SEC approved several spot Bitcoin ETF applications on January 10, setting a precedent in the industry. According to data from Cointelegraph Markets Pro, the price of Ethereum immediately rose to more than $3,900 after the SEC’s announcement, but then fell to $3,759 at press time.
The hottest sectors at present are memes and Ethereum. In the meme sector, PEOPLE and PEPE are undoubtedly the hottest. If you chase the heat, you can allocate some meme coins, while Ethereum is suitable for long-term holding.
Market Outlook and Investment Recommendations
As the weekend approaches, the market is likely to fluctuate and adjust. Although there may be a short-term negative impact after the Ethereum ETF is approved, it is still optimistic in the long run. For investors who passively stop losses, they can buy 10% of ETH at a suitable point and hold it for a long time. It is expected to break through the previous high of $4,800 in the future.
The currently recommended position is about 50%. The following currencies are worth holding:
ETH
SUN
BNB
WITH
CHR
FTM
MATIC
These currencies are expected to perform well in the future and are suitable for long-term investment.