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Ethereum ETF Approval Could Change Cryptocurrency Market in Unusual Ways
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Since May, the cryptocurrency ecosystem has been waiting for the S-1 filing approval for the Ethereum spot ETF. While top market experts have run out of projections on when the product will launch, ETFStore President Nate Geraci She said sees no reason why the product shouldn’t launch this week.
As it is, the outlook Ethereum ETFs issuers have reached an agreement to satisfy the U.S. Securities and Exchange Commission (SEC) by amending their respective S-1 registration forms. With compromises already in place since the days of spot Bitcoin ETF approval, the market is not expecting any further delays.
However, many are concerned about what will happen to the industry if the Ethereum ETF starts trading. The conversation is based on its immediate impact on the market in terms of price gains.
When the SEC approved filings 19b-4 in May, the update fueled a massive rally in the coin’s price, with a ripple effect on Bitcoin and altcoins more broadly. This rally, while short-lived, could be repeated when Ethereum ETF products begin trading.
Bullish sentiment on the price is already creeping in. At the time of writing, Ethereum price and trading volume are up 4.14% and 34.43% to $3,334.51 and $13,196,383,402, respectively.
In addition to the price impact, the launch of the Ethereum ETF has effectively removed restrictions for other altcoins aiming to accept similar products on Wall Street. There are already active applications for a VanEck Solana ETF, and 21Shares has already stopped pushing the product with a duopoly of Bitcoin and Ethereum.
The Ethereum ETF’s trading and potential capital injection could confirm what cryptocurrency proponents have long predicted: that there is a fair amount of demand for regulated, widely available crypto products.
After Solana, the market could see a Shiba Inu and XRP ETFs in the future.
About the author
Godfrey Benjamin
Godfrey Benjamin is a cryptocurrency journalist whose main goal is to inform everyone around him about the prospects of Web 3.0. His love for cryptocurrency began when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. Due to his vast experience in covering various aspects of Web3, Godfrey’s articles have been published on Blockchain.news, Cryptonews, and Coingape, among others.