The US Securities and Exchange Commission has approved “Spot Exchange” in Ethereum. There is a discussion going on about this decision but the SEC took this decision.
The US SEC gave the green light to a Spot Ethereum ETF, which surprised a lot of people. Some think it might be for political reasons, but analysts believe it’s probably to prevent lawsuits and because Ethereum is becoming more like Bitcoin in the commodity market. This is good news for the crypto market because it could lead to more demand for Ethereum and push companies to finish their Ethereum ETF applications.
Behind the reasons for SEC’s approval?
Some people believed that the US President. the US Agency took this decision to vote before the US Presidential elections, but Bernstein analysts say that this theory became less credible after President Joe Biden vetoed the proposal to repeal the SEC’s Staff Accounting Bulletin No. 121. analysts accept that this is a difficult decision for the agency because Ethereum and Bitcoin both are similar and Both have benefited from the commodity market.
Market Expectations Differ?
According to Bernstein, The Security exchange commision may have taken the decision to avoid lawsuits, which means that this decision may have been taken not only for political reasons but also for keeping many other things in mind, however expectation for approval was low, the SEC’s decision has taken many by surprise.
The decision means for market participants?
With notable organizations like VanEck, BlackRock, and Fidelity now in the process of finalizing their registration statements, the launch of Ethereum ETFs is eagerly anticipated, offering investors new opportunities in the cryptocurrency space.
This decision is good news for the crypto market. Having an Ethereum ETF could increase demand and have a positive impact. The agency’s decision affected Ethereum and Bitcoin similarly. Now, companies like VanEck, BlackRock, and Fidelity are working on finishing their registration process.
