SEC Approves Ethereum ETFs In Landmark Breakthrough for Crypto, ETH Price nears $4,000

The US Securities and Exchange Commission (SEC) approved spot Ethereum ETFs (exchange-traded funds) in another landmark regulatory breakthrough for crypto, sending the Ethereum price soaring nearly 2% to $3,792.

The decision comes nearly five months after the landmark approval of multiple Bitcoin spot ETFs, and despite the fact that until early this week most analysts had believed such a decision was highly unlikely.

The announcement came only hours after the SEC initiated talks with Ethereum ETF issuers for final adjustments to their S-1 forms, causing markets to speculate that approval was a done deal. Ahead of the announcement, SEC chair Gary Gensler had told investors to “stay tuned.”

JUST IN: The SEC initiates talks with Ethereum ETF issuers for final adjustments to the S-1 form.
Looks like the $ETH ETF is a done deal. 🚀
— Lark Davis (@TheCryptoLark) May 23, 2024

Ethereum ETFS Fast-Tracked By SEC

The securities watchdog began fast-tracking the approvals process early this week, when it asked applicants to update their filings. That prompted analysts Eric Balchunas and James Seyffart at Bloomberg Intelligence to up the odds of approval to 75%, from ”slim to none” previously.

In anticipation of an imminent approval, investors purchased more than 100,000 ETH in spot markets on May 22, the highest for a day since last September, according to on-chain analytics firm CryptoQuant

Early ETH holders buy over 100K ETH yesterday
Julio Moreno, Head of Research at CryptoQuant, reported on X that "Permanent Holders" of Ethereum bought a massive amount of ETH yesterday amid the increasing speculation of spot ETH ETF approval. They purchased over 100,000 ETH, the…
— CoinNess Global (@CoinnessGL) May 21, 2024

A bipartisan group of House lawmakers, including Majority Whip Tom Emmer and NJ Democrat Josh Gottheimer, had sent a letter to the SEC chair yesterday, May 22, urging the SEC “to approve spot Ether ETFs and ‘`other’ digital assets.” The letter said that the investment products would offer investors access to crypto in a regulated, transparent, and safe format.

We urge SEC Chair @GaryGensler to approve the pending Ether ETP applications. @GOPMajorityWhip @RepJoshG @USRepMikeFlood @WileyNickel
Check out our letter to @GaryGensler below: pic.twitter.com/uv8Sp8lqUx
— French Hill (@RepFrenchHill) May 23, 2024

Singapore-based QCP Capital said earlier that approval of ETH ETFs could trigger a 60% increase in the price of Ethereum.

The Ethereum price has soared by almost 45% in the past two weeks, mirroring the surge seen in the Bitcoin price in the run up to the approval of spot Bitcoin ETFs in January. ETH is trading at $3,792 as of 17:19 p.m. EST.

GeckoTerminal: ETH/USD 1-day chart

Also Read:

Meme Coins Explode On Ethereum ETF Optimism As Pepe Hits ATH
Ethereum Price Prediction: ETH Climbs 2% As 5 ETF Bidders Amend Their Filings And This Green AI Crypto Presale Races Towards $4 Million
Ethereum Name Service, Ethena, And ETH Meme Coins PEPE And FLOKI Among Big Winners As ETH ETF Odds Improve