The United States Securities and Exchange Commission approved multiple spot Ether ETFs after speculation that the regulator was considering treating ETH as a security.
In another landmark ruling in 2024, the US SEC gave the regulatory approval to spot Ether exchange-traded funds (ETFs) in the country.
In a May 23 filing, the SEC approved the 19b-4 filings from Fidelity, Grayscale, VanEck, BlackRock, ARK 21Shares, Invesco Galaxy, Franklin Templeton, and Bitwise. On that note, the regulator approved the rule changes authorizing spot Ether ETF to get listed and traded on their respective exchanges. The landmark decision came despite speculation that the securities watchdog has been investigating whether to label Ether (ETH) as a security.
While the 19b-4s have been given a green light, ETF issuers still need the SEC to sign off on their respective S-1 registration statements for the spot Ether ETFs to officially start trading. Industry analysts say this process could take days, weeks, or even months.
The SEC is said to have instructed applicants to speed up their 19b-4 filings on May 20. The elimination of staking is the most notable amendment seen across multiple filings.
Interestingly, the SEC did not announce approval of Hashdex’s spot Ether ETF application. The asset manager’s investment vehicle had a pre-set final deadline with the commission set for May 30 – ahead of Invesco Galaxy, BlackRock, Grayscale, and Fidelity. It is not known whether the SEC will eventually approve Hashdex’s ETF.
The SEC approval comes only a day after the United States House of Representatives members voted in favor of legislation many think will offer more regulatory clarity to the crypto sector. The Financial Innovation and Technology for the 21st Century Act will help clarify the roles of the SEC and Commodity Futures Trading Commission (CFTC), but it still requires to be passed by the Senate and signed into law.
Notably, the spot Ether ETF approval comes nearly four and a half months after the SEC approved multiple spot Bitcoin ETF applications on January 10, marking an industry first. Based on data acquired from the markets, the price of ETH surged to over $3,900 instantly after the SEC announcement, then plunged to $3,759 within half an hour.
SEC’s ETF Approval Could Bring ETH Season
After the approval of Ether ETFs, three key indicators suggest the probability that ETH could exceed its all-time high, based on a crypto trader.
Ether could explode to retest the $5,000 price level it almost hit in 2021 if three long-term indicators keep flashing, as explained by one crypto trader. Pseudonymous crypto trader Blockchain Mane said:
“The dominance chart suggests we’re entering an ‘ETH Season’ where Ethereum is likely to outperform other cryptocurrencies.”
This statement came after the US SEC’s May 23 initial approval of eight spot Ether exchange-traded funds (ETFs).
TradingView data highlights Ether’s dominance – its share of the crypto market – spiked by 19.56% in the past week after reports emerged that the SEC was pivoting from its hard stand on ETF approvals.
Blockchain Mane noted another major long-term indicator, the Fibonacci retracement, which was showing “strong support.” The indicator forecasts potential price levels where Ether (ETH) could bounce back according to mathematical patterns calculated from the Fibonacci sequence.
ETH is showing “resistance targets at $5080.60 and $6231.83,” Blockchain Mane explained. A price it has not traded near since its November 2021 all-time high of $4,878, according to CoinMarketCap. At the time of writing, ETH was trading at $3,712.
The third indicator Blockchain Mane noted was the parabolic curve that spots possible trend changes by placing dots over and below Ether’s price movements.
Mane said that ETH is currently following a “bullish trend” along the curve, with three marked phases. They said:
“The parabolic curve indicates continued upward movement, especially after the falling wedge breakout.”
Analysts Comment On The ETH ETF Approval
Other crypto traders have been focusing on the near-term price action amid the spot Ether ETF approvals.
On the other hand, crypto commentator Benjamin Cowen explained in a May 23 X post:
“ETH is up more this week than the S&P 500 typically gives you in a year.”
Crypto trader Matthew Hyland thinks it is important for Ether to now ‘hold’ support near $3,800 “for a continuation.”
The price of Ether did not move a lot after ETF approvals, possibly because it had already been priced in the approval and because ETF trading had not started.
