Cryptocurrency market price data (CoinMarketCap, CoinGecko)

SEC Approves Ethereum ETFs, Market Anticipates Major Growth with 26% Rally and 500% Surge

May 29, 2024, 05:30 AM

The U.S. Securities and Exchange Commission (SEC) has approved spot Ethereum exchange-traded funds (ETFs), marking a significant milestone for the cryptocurrency market. According to Kaiko Research, this approval is expected to drive long-term growth for Ethereum, despite potential short-term volatility. The approval process is ongoing, with trading anticipated to commence in a few months as the SEC reviews S-1 registration statements from potential issuers. Market analysts predict that Ethereum could experience a substantial upward trajectory, with some experts forecasting a 500% surge. The approval has already led to a two-month high in net inflows for Ethereum and a 26% rally last week. Additionally, the first leveraged Ether ETF, the Volatility Shares 2x Ether Strategy ETF, is set to begin trading on June 4. The approval of these ETFs is seen as a pivotal moment for the crypto market, potentially sparking a major rally and increasing Ethereum's market share. Former SEC chair and other experts draw parallels with the success of Bitcoin ETFs, suggesting that the Ethereum ETFs could have a similar impact. However, investors are advised to remain patient as the full effects of the approval unfold. Grayscale's upcoming spot Ethereum ETF may see significant daily outflows of around $110 million based on patterns observed with its Bitcoin Trust conversion.