Is Ethereum (ETH) gearing up for an imminent bull run? In a surprising twist, the US Securities and Exchange Commission (SEC) approved the first Ethereum exchange-traded funds (ETFs) on May 23, triggering over 25% gains for the second-largest cryptocurrency in the market.
In a recently released report on May 27, analytics platform Kaiko highlighted the drastic shift in sentiment surrounding Ethereum after the unexpected approval of ETH ETFs by the SEC. Will Cai, the head of indices at Kaiko, emphasized in the report that the SEC’s approval of Ethereum ETFs implicitly declares the second-largest cryptocurrency as a commodity, not a security.
“With these approvals, the SEC has implicitly declared that ETH (without staking) is a commodity and not a security. This is not just about access to ETH, but it has significant and likely positive ramifications on how all similar tokens will be regulated in the US in terms of trading, custody, transfer, etc.,” stated Cai.
On May 23, the SEC approved the 19b-4 filings for NYSE, Cboe, and Nasdaq. As a result, the agency will now proceed with reviewing the S-1 forms from issuers such as BlackRock, Fidelity, and VanEck. Trading of Ethereum ETFs will only commence after the approval of these forms.
At the time of publication, the Ethereum price was quoted at US$3,930.98, experiencing a 2.4% increase in the last 24 hours. Over the past seven days, Ethereum’s price has surged by 25.5%.
When will US Ethereum ETFs begin trading? JPMorgan provides a forecast
Analysts at JPMorgan have shared their prediction for the start of trading for US spot Ethereum ETFs. According to recent information published by The Block, JPMorgan estimates that trading for Ethereum ETFs could begin well before November.
JPMorgan analysts, led by Kenneth Worthington, shared their forecast for the start of Ethereum ETF trading in a report on May 24. “We view this ETF approval, and cryptocurrency more broadly, as an increasingly political issue ahead of the 2024 US presidential elections. As such, we expect spot ETH ETF trading to begin well before November,” highlighted Worthington.
Disclaimer: The views and opinions expressed by the author or anyone mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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