The SEC has given its approval for Form 19b-4 to eight Ethereum ETF issuers, paving the way for institutional investment. The approved issuers include BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, the trading of these ETFs can only commence once the S-1 registration statements are effective, a process that could take a few weeks to complete, according to Bloomberg analyst James Seyffart.
The SEC’s decision to grant accelerated approval for these proposals is based on their compliance with the Exchange Act and its regulations, specifically Section 6(b)(5) and Section 11A(a)(1)(C)(iii). These sections ensure the prevention of fraudulent and manipulative acts, as well as the protection of investors and the public interest. The SEC has also emphasized the importance of information availability regarding securities transactions, as outlined in Section 11A(a)(1)(C)(iii).
To meet their obligations, exchanges listing bitcoin-based ETFs can establish comprehensive surveillance-sharing agreements with regulated markets of significant size related to the underlying assets. Although spot ether does not trade on the Chicago Mercantile Exchange (CME), the involved exchanges have such agreements through their membership in the Intermarket Surveillance Group. This allows for the sharing of information available through CME’s surveillance of its markets, including ether futures. The SEC has determined that these agreements are sufficient to prevent fraud and manipulation, despite the absence of spot ether trading on the CME.
The crypto community has reacted positively to the SEC’s approval, anticipating increased liquidity and stability in the Ethereum market. Ripple CEO Brad Garlinghouse has hinted at the possibility of XRP being the next cryptocurrency to receive approval for ETFs, following the approval of Ethereum spot ETFs. Garlinghouse has emphasized the significance of the SEC’s approval and the passing of the FIT21 crypto bill, describing them as momentous for the industry.
Market analysts have offered optimistic predictions in light of the approval of Ethereum spot ETFs. Miles Deutscher, a market analyst, has forecasted a potential surge in Ethereum’s price to $6,446 by July if the ETFs receive final approval, drawing comparisons to Bitcoin’s historical performance after ETF approval. Deutscher expects a 75.17% increase in Ethereum’s value. Standard Chartered analysts have also predicted significant inflows into Ethereum, estimating between $15 billion and $45 billion within the first 12 months of ETF approval. They suggest that Ethereum’s prices could reach $8,000 by the end of 2024, driven by these inflows and broader market trends.
As of now, Ethereum (ETH) is priced at $3,654, with a 24-hour trading volume of $40,730,127,309. Although there has been a 4.29% price decline in the last 24 hours, there has been a 23.37% increase over the past week. The highest recorded price for Ethereum was $4,878.26 on November 10, 2021, which is 24.73% higher than the current price.
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