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SEC Approves Eight Ethereum ETFs, ETH Surges to $3,900 Amid Bullish Sentiment

May 26, 2024, 11:30 AM

The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum (ETH) Exchange-Traded Funds (ETFs), marking a significant milestone in the cryptocurrency market. This approval follows the success of Bitcoin (BTC) ETFs, which have seen substantial inflows and have legitimized crypto as an asset class. Analysts predict that demand for ETH ETFs could reach 20-25% of that for BTC ETFs, with some suggesting it could be as high as 15-20% of BTC ETF assets under management. Despite the approval, institutional interest in ETH ETFs remains lower compared to BTC, with ETH making up less than 15% of Hong Kong assets. The approval has contributed to a bullish sentiment in the market, with ETH prices surging to $3,900. The ETFs are expected to start trading soon, potentially by August, and are anticipated to have trading volumes of 10-15% of what BTC ETFs initially saw. Additionally, the approval of these ETFs has coincided with a broader shift in U.S. regulatory stance towards crypto, with lawmakers agreeing to create a regulatory framework. The Ethereum Foundation is also considering a formal conflict of interest policy following community backlash, and the Pectra upgrade is on the horizon.