Ethereum ETF Reportedly Gets SEC Blessing, Will ETH Price Rise?
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The Ethereum ETF has reportedly received the green light from the Securities and Exchange Commission (SEC) for approval in the near future. This development could be a significant catalyst for the price of ETH and potentially push it to new all-time highs.
According to a recent article by The Wall Street Journal (WSJ), the SEC is considering allowing multiple Ethereum futures ETFs to be listed simultaneously. This move will mark an important milestone for the crypto industry, as it will be the first-ever based ETF available to US investors.
Previously, Volatility Shares had announced plans to launch an Ethereum futures ETF on October 12. What's more promising is that since its filing in July, the SEC has not asked the company to withdraw its application, indicating a favorable outlook.
The introduction of Ethereum futures ETFs in the US market could lead to an influx of institutional capital. Historically, the launch of Bitcoin futures in December 2017 was followed by a significant price spike, and a similar trend can be anticipated.
Effect to ETH Price
Ethereum (ETH) price immediately rebounded towards US$1,700 after a Bloomberg report citing an anonymous source stated that the US SEC is set to give the green light to several ETH Futures ETF applications. Apps from Wall Street bigwigs like ProShares, Volatility Shares, Bitwise, and Roundhill were among those identified in the report.
A quick glance at Ethereum's current price performance reveals that it is trading around US$1,668.03. Even though this is below an all-time high, the positive news surrounding the potential ETF list can act as a powerful bullish catalyst.
The anticipated increase in institutional interest and Ethereum's legitimacy as a vehicle for investing through ETFs could drive significant demand, driving prices up.
However, it is important to note that while the news is promising, the actual impact on the price of Ethereum will depend on a variety of factors, including broader market sentiment, regulatory developments, and the actual launch of the ETF. Investors should be careful and do thorough research before making investment decisions.
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