Ethereum ETF Will Be Approved by SEC, This Impact on the Crypto Market

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Crypto investors in the United States (US) may soon be able to enjoy a new investment product that offers easy access to Ethereum (ETH), the second largest crypto in the world. Exchange Traded Fund (ETF) Ethereum, which is a fund that tracks the price of ETH by storing the digital asset directly, is predicted to have a great chance of getting approval from US regulators.

According to Bitwise researcher Ryan Rasmussen, in an interview with Yahoo Finance on Feb. 26, the chances of Ethereum spot ETF approval are as high as 50%. He said, "I'm not sure if the market meets the U.S. Securities and Exchange Commission's (SEC) criteria to approve a spot [Ethereum] ETF in May. However, the chances are quite large, 50% agree and 50% refuse, or postpone to the next stage of submission."

A similar prediction was made by Bitwise's Head of Global Research, Matt Hougan, who previously predicted a nearly 50% chance of approval for a spot ETH ETF in May. Meanwhile, the Polymarket website predicts a slightly lower chance, at 41%.

Get to know the Ethereum Spot ETF

Spot Ethereum ETFs are investment products that allow investors to buy and sell shares representing ETH holdings held by ETF providers. As such, investors do not need to buy or store ETH directly, but still get the same price exposure as ETH. Spot Ethereum ETFs also provide benefits in the form of liquidity, transparency, and tax efficiency.

Currently, there are several spot Ethereum ETF applications pending at the SEC, including from VanEck, ARK 21Shares, Fidelity, Invesco, Galaxy, Grayscale, and Hashdex. The SEC has until May 23, 2024 to rule on VanEck's application, which is expected to serve as a reference for other applications, as it did for spot Bitcoin ETFs.

A spot Bitcoin ETF is an investment product that tracks the price of Bitcoin (BTC), the world's largest crypto, by storing the digital asset directly. The first spot Bitcoin ETF in the US, the ProShares Bitcoin Strategy ETF (BITO), was launched in October 2021 and immediately received a positive response from the market. To date, there are seven spot Bitcoin ETFs operating in the US, with total assets in excess of $15 billion.

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SEC Has a Chance to Approve an Ethereum ETF

Rasmussen also discussed that the SEC only approved a Bitcoin ETF after Grayscale, the world's largest crypto fund provider, filed a lawsuit denying its application. He added that it is not yet clear whether a similar move is needed for the current Ethereum ETF.

Bitwise itself has no pending Ethereum spot ETF applications, but they were among several applicants that were successfully approved for spot Bitcoin ETFs last January. Rasmussen stated that Bitwise is "very pleased" with the success of the Bitcoin ETF. He revealed that the company has seen a flow of assets worth $1 billion (Rp 15.6 trillion) into their own Bitcoin ETF (BITB).

Impact If Ethereum Spot ETF Is Approved

Rasmussen also predicts that spot Bitcoin ETFs and other funds will push crypto prices up, as institutional investors who previously "pulled over" start investing. He said, "When we see such a surge in demand in the market, it is not surprising that the price of Bitcoin is rising... I think the same thing will happen to Ethereum or any other asset if more ETFs are launched."

Selain itu, Rasmussen juga menyoroti peristiwa lain yang berdampak pada pasar kripto, termasuk peristiwa “halving” Bitcoin mendatang, peningkatan Dencun pada Ethereum, volume perdagangan NFT, dan pertumbuhan harga Solana. Ia berpendapat bahwa kripto sedang “bangkit dari abu” pasar yang lesu di tahun 2022 dan memasuki siklus bullish multi-tahun. 

Di akhir wawancara, Rasmussen menegaskan kembali prediksi harga sebelumnya dari Bitwise dan menyatakan bahwa kripto terkemuka, Bitcoin, masih di jalur untuk mencapai rekor tertinggi baru setidaknya $88.000 (Rp 1,3 miliar) pada akhir tahun 2024.

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Cara Beli Bitcoin (BTC) di Bittime

Kamu bisa beli dan jual Bitcoin (BTC) dengan cara yang mudah dan aman melalui Bittime. Bittime adalah satu aplikasi kripto terbaik di Indonesia yang sudah resmi terdaftar Bappebti. 

Bitcoin (BTC) is available on Bittime with the BTC/IDR market pair. To be able to buy BTC IDR on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.

Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.

Monitor the price chart movements of Bitcoinn (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What is a Crypto ETF and What Are Its Pros?

Ethereum (ETH) Price Rises, Driven by Dencun and ETF Upgrades

Franklin Templeton Joins Competition to Launch Ether Spot ETF

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.