SEC Approves First U.S. Ethereum ETFs; Trading Begins

• U.S. SEC approves spot Ethereum ETFs, trading starts in the U.S.
• NYSE Arca and CBOE list new Ethereum ETFs; Solana ETF is considered next.
• The crypto market anticipates an Ethereum price surge past $4K despite current resistance.

After eight months, the U.S. Securities and Exchange Commission (SEC) has given the go-ahead for the launch of spot Ethereum Exchange Traded Funds (ETFs) in the United States. Today, the market saw the commencement of trading for these ETH ETFs.

Investors eagerly await the opportunity to invest in this new cryptocurrency asset. The ETH ETF proposals were initially granted partial approval with the passing of their 19b-4 filings in May. Nonetheless, the SEC experienced significant delays in finalizing the necessary documentation. The approval of the S-1 filing was a prerequisite for the product’s launch today.

NYSE Arca confirmed just yesterday that it has received authorization to list and initiate trading of the Grayscale Ethereum Trust and Bitwise Ethereum ETF starting July 23. In a similar vein, the Chicago Board Options Exchange (CBOE) is set to list five new ether exchange-traded funds (ETFs) today. 21shares, VanEck, Fidelity, Franklin Templeton, and Invesco Galaxy offer these spot Ethereum ETFs.

Will the ETFs Affect the Ethereum Price?

Bitcoin, the foremost cryptocurrency, saw its ETF debut in January 2024. Subsequently, the price of BTC climbed to a record high of $73K within three months following the approval. The Ethereum ETF marks the second cryptocurrency-based ETF to commence trading in the U.S.

The crypto market is also expecting the ETH price to rise following the start of ETF trading. Crypto analyst Kaleo has suggested that there is a “high likelihood we see some type of pullback after the spot ETF launches,” forecasting a potential drop in the asset’s value before it enters a price discovery phase.

Looking ahead, the community expects Ethereum’s price to surge past the $4K mark. Ethereum is facing challenges in surpassing the $3,500 resistance level, with its price at $3,450, representing a 1.12% decrease.

Next in line for ETF approval could be Solana . VanEck filed for a Solana-focused investment product in late June, as Solana stands as the fifth-largest cryptocurrency by market capitalization. This move by ETF issuers is yet another effort to stimulate demand for digital assets. Furthermore, the approval of a Solana ETF could lead to greater incorporation of Solana into the conventional financial framework.