Ethereum ETFs in the USA: Securities and Exchange Commission (SEC) Gives the Green Light

The US Securities and Exchange Commission (SEC) has just given the green light for Ethereum ETFs. The Bitcoin ETFs that have been traded in the US since January have driven the BTC price curve.

Looking back, January 10th this year was a historic day for the crypto industry when the powerful US Securities and Exchange Commission (SEC) approved Bitcoin ETFs. This effectively integrated Bitcoin into the classic financial system and has since enjoyed significant price gains and regulatory clarity.

Ethereum ETFs officially allowed by the SEC

Today it is the turn of the number two cryptocurrency, Ethereum (ETH). After much back and forth, the SEC has decided to fundamentally allow Ethereum ETFs and has informed applicants of this. Illustrious names such as VanEck, Galaxy and Fidelity are now likely to bring Ethereum ETFs onto the stock exchange in the near future.

The price curve of ETH had already turned positive by 25 percent since Monday. After the weekend, to the surprise of market participants and observers, the SEC suddenly actively took up the topic of Ethereum ETFs and asked applicants to fine-tune their documents for an accelerated procedure. This included the Ethereum ETFs not contributing their ETH for staking and the associated interest income.

In April, however, everything looked as if the SEC would also maintain its crypto-critical position on Ethereum ETFs. Now pressure from the White House is said to have caused the SEC to change its mind, as crypto has become a factor in the US election campaign.

Investors are now asking themselves: What influence can the Ethereum ETFs have on the price development of ETH? If you take the Bitcoin ETFs as a benchmark, the answer is simple. Around a month after their debut, it became clear that they are actually attracting billions of US dollars to Bitcoin.

On January 11th, the first day of trading for Bitcoin ETFs, BTC was trading at around $46,000, Bitcoin is now at over $70,000 and set a new all-time high of just under $74,000 in March. Before today’s SEC decision, Ethereum was priced at just under 3,800 US dollars, and the ETH all-time high of almost $4,900 dates back to November 2021.

Conclusion: Are Ethereum ETFs paving the way for a crypto rally?

It is still unclear exactly when the Ethereum ETFs will see their first day of trading in the USA. From then on, analysts will be counting exactly which investments these financial instruments attract. Bitcoin ETFs far exceeded expectations here. But it is already clear that with the SEC’s acceptance of Bitcoin and Ethereum ETFs, the crypto industry in the USA is gaining a foothold on Wall Street and this should have positive effects for medium and long-term price targets.

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(Featured image by Shutter_Speed via Pixabay)

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