In the least-expected turnout of events, the United States Securities and Exchange Commission (SEC) has finally approved eight Ethereum spot Exchange Traded Fund (ETF) listings, causing a widespread reaction in the crypto space, especially the Ethereum community, as enthusiasts anticipate a market boom, particularly for altcoins.
While we highly anticipated Ethereum’s spot ETF approval, the timing of the approval came as a shock because the SEC has been reluctant to engage with the Ethereum ETF issuers.
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The SEC Ethereum ETF approval included the 19b-4 filings from Grayscale, BlackRock, Fidelity, Bitwise, VanEck, ARK 21Shares, Invesco Galaxy, and Franklin Templeton. Unfortunately, Hashdex was left out, as its application was not due at the time of the approval.
BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It’s really happening.
h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
— James Seyffart (@JSeyff) May 23, 2024
194b-4 Spot ETF Approval Does Not Mean Trading Is Beginning Immediately
Taking to his verified X account, James Seyffart, a Chartered Financial Analyst (CFA) and a Chartered Alternative Investment Analyst (CAIA) has explained to his over 158K followers the procedures involved in spot ETF approvals.
According to the financial expert, the approved ETFs will not begin trading anytime soon, as they have only successfully scaled through 19b-4 approval. The CIA noted that approval of the S-1 document is necessary to finalize the procedures. Part of his statements on X read in parts, “Also needs to be an approval on the S-1 documents, which will take more time. We’re expecting it to take a couple of weeks, which could extend further. Should know more within a week or so!”
Furthermore, a timeline for the process completion was estimated, which Seyffart stated could take up to five months, noting that Bitcoin’s ETF approval procedures took about three months. However, the CFA hinted at the possibility of accelerating protocols.
Amid the hype and excitement revolving around Ethereum’s ETF approval, a renowned market analyst has taken to his official X account to highlight three significant events that would follow the ETF acceptance by the SEC.
Ethereum To Displace Bitcoin As The Coin With The Largest Market Cap
Per renowned crypto market analyst Armando Pantoja, three crucial things will happen following Ethereum’s ETF approval. The first significant event is that Ethereum will gain more regulatory clarity, which would eventually attract considerable institutional investment for the Ether-based token, eventually resulting in more capital influx for Ethereum’s smooth running.
In addition, Pantoja noted that Ethereum’s ETF would exceed the Bitcoin ETF in eliciting heightened market performance. Finally, the third crucial event hinted at Ethereum surpassing Bitcoin as the crypto asset with the most valuable market capitalization worth.
Things that WILL happen because of the New #Ethereum ETF approval:
1/ Confusion about Ethereum’s status with the SEC will decrease as approval of the $ETH ETF will resolve its classification, triggering significant institutional investment.
2/ The Ethereum ETF WILL surpass the… pic.twitter.com/2V6iz4KKXd
— Armando Pantoja (@_TallGuyTycoon) May 24, 2024
Meanwhile, in a different tweet, Pantoja noted that the Ethereum ETF endorsement, coupled with other factors, including the rise of Artificial Intelligence (AI) tokens, would catalyze the ETH price drive around the $12.5K to $20K region.
Just like I told you that the #Ethereum ETH would be approved in May months ago.
I’m telling you this, along with other things including the rise of AI tokens, will push $ETH to $12.5k – $20k
Mark my words, I’m 100% sure pic.twitter.com/lBHMgH8mb7
— Armando Pantoja (@_TallGuyTycoon) May 23, 2024
Ethereum’s Current Market Standings Relative To Bitcoin’s
At press time, ETH’s price statistics, according to CoinGecko, revealed the Ether-based token price to be about $3,800. On the other hand, BTC is selling at approximately $67,500. In market cap valuation, BTC boasts more than 50% of the entire crypto market cap at about $1.33 trillion. Meanwhile, ETH has just $455 billion, implying that it needs to surge roughly three times to equal Bitcoin’s market cap – a relatively daunting increment.
Exceeding BTC’s market capitalization would undoubtedly catalyze a tremendous increase in the entire crypto market cap, resulting in crypto assets price and market appreciation across several indices. How events unfold remains uncertain. However, as with happenings in the crypto space, spot ETF approval is always anticipated to come with renewed hope and enthusiasm in crypto communities.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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