What will Happen to ETH’s Price if the SEC Approves All Spot Ethereum ETF Applications?

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A decade of wait, rejections, and delays was over when the United States Securities and Exchange Commission finally waved a green flag at a dozen spot Bitcoin ETFs in 2024 beginning. The impact of these approvals has been positive on Bitcoin’s price as traditional investors’ demand for these products has increased. 

As numerous companies in the cryptocurrency industry wish to follow the example of Bitcoin, the two biggest names with current ETF applications with the SEC are Blackrock and Fidelity. Recently, the Spot Ethereum ETF applications started to wind down despite previous predictions that the Commission would approve all filings in May 2024. 

SEC’s ETF Approval and Its Impact on ETH Price

Fortune reported that the SEC is considering an investigation to classify Ether, the native cryptocurrency of the Ethereum network, as a security. Organizations that have received subpoenas related to this probe have said that the SEC demands documents and financial records concerning their dealings with the Ethereum Foundation. The SEC’s hesitance to approve spot Ether ETFs leaves applicants like Hashdex and ARK 21 Shares waiting for final decisions in May. While the SEC approved 11 Bitcoin ETFs earlier this year, it seems like Ethereum ETFs may face regulatory hurdles.

However, the community keeps speculating about the success rate of Ethereum ETFs in comparison to Bitcoin ETFs, so we decided to chalk down the details of what would happen to ETH’s price if the SEC approves all the current proposals on ETH’s ETF. Amid the latest SEC delays, industry experts talk about the potential impact of ETH ETF approval on the price of Ethereum. On the one hand, the community keeps calling the potential Ethereum ETFs a flop, while on the other hand, there is doubt regarding the token’s price after the advent of ETH ETFs.

As we remember, the price of Ether spiked to its highest level since May 2022 after the approval of the Bitcoin ETF. It would not be a surprise if the ETF approval dedicated to Ethereum shoots up the token’s price. 

Also Read : April’s Most Anticipated Crypto Events Revealed: Here’s What in the Store

If an Ethereum ETF receives approval, we could surely witness a significant positive upside in Ethereum’s price in 2024. Similar to the BTC ETF, this would be driven by speculative interest and increased accessibility for both retail and institutional investors. This collective response is going to cause a surge in demand. An approved ETH ETF would mark the network’s institutionalisation, attracting stable and long-term investment. Regulatory clarity will be established, providing a solid foundation for Ethereum’s growth and further innovation and will be powered by increased investor confidence. 

Ethereum is currently priced at $3,502.58, showing a 4.91% decline in the 24-hour window. According to the Coinpedia Markets, the technical indicators signal the bullish 89% market sentiment on Ethereum, while the Fear & Greed Índice is displaying a score of 75. If the Ethereum ETF gets the green light, it will surely be the next big thing for 2024’s crypto fate.

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