Spot Ether ETFs Approved for Trading on Major Exchanges
Spot Ether exchange-traded funds (ETFs) are set to make their debut on Tuesday after receiving final approval from the US Securities & Exchange Commission (SEC). This approval comes as a significant milestone for the cryptocurrency industry, signaling a maturing market and regulatory support.
At least two of the eight firms that applied for ETF approval, including industry giants BlackRock and VanEck, have been given the green light to launch their products. These ETFs will be available for trading on three major exchanges – Cboe, Nasdaq, and NYSE.
Ether (ETH) is the underlying cryptocurrency of the Ethereum network, which is currently the second-largest crypto network by market cap. The approval of Spot Ethereum ETFs is seen as a positive catalyst for the market, with experts predicting a potential recovery in the market sentiment.
Pankaj Balani, CEO & Co-Founder of Delta Exchange, mentioned that while the approval of ETH ETFs could boost market sentiment, transaction volume on the Ethereum blockchain has slowed down as activity has shifted to Layer 2 solutions and other chains like Solana.
With the introduction of ETFs and upcoming network upgrades, the question arises – can Ethereum reach $5,000 by the end of 2024? Sumit Gupta, Co-founder of CoinDCX, believes that the current momentum and market developments suggest Ethereum is well-positioned to sustain its upward rally.
Sumit Gupta also highlighted the broader implications of the introduction of Bitcoin and ETH ETFs, stating that it opens the floodgates for more crypto exchange-traded products, potentially including a Solana-based ETF. This shift in perception from crypto as a speculative asset to a foundational element of investment portfolios is further solidified by the increased involvement of financial institutions in the crypto space.
As of 10:37 am IST, Ethereum was trading 1.7% lower at $3,450. The market will be closely watching the debut of Spot Ether ETFs and how they impact the overall crypto market moving forward.