Is Ethereum (ETH) heading towards 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 a 25% gain for the second-largest cryptocurrency in the market.
In a 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, head of indices at Kaiko, emphasized in the report that the approvals of Ethereum ETFs by the SEC imply that the regulator has implicitly declared the second-largest cryptocurrency as a commodity rather than 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 implications for how all similar tokens will be regulated in the US in terms of trading, custody, transfers, etc.,” stated Cai.
On May 23, the SEC approved the NYSE, Cboe, and Nasdaq’s 19b-4 filings. As a result, the agency will proceed with reviewing the S-1 forms of 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, representing a 2.4% increase in the last 24 hours. Over the past seven days, the ethereum price has risen by 25.5%.
When will US Ethereum ETFs start 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 of Ethereum ETFs may 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 see this ETF approval, and cryptocurrency more broadly, as an increasingly political issue ahead of the 2024 US presidential election. As such, we expect spot ETH ETF trading to begin well before November,” highlighted Worthington.
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