Ethereum ETF key documents have been approved: 3EX AI trading wins

Recently, the SEC's approval progress for Ethereum ETFs has been a topic of great concern and controversy. After a long wait and efforts from all parties, several applicants, including well-known institutions such as BlackRock, Fidelity, and Grayscale, have finally successfully obtained approval from the U.S. Securities and Exchange Commission (SEC), which is undoubtedly a major breakthrough in the cryptocurrency market.

In the early morning of May 24, Beijing time, the U.S. Securities and Exchange Commission approved the 19b-4 forms of multiple Ethereum spot ETFs, including those from BlackRock, Fidelity, and Grayscale. However, although the form has been approved, ETF issuers need to make the S-1 registration statement effective before they can start trading. The SEC has just begun discussing the S-1 form with issuers. It is not clear how long this process will take, but some analysts speculate that it may take weeks.

The tortuous journey of Ethereum ETF approval

Compared to the smooth approval of Bitcoin ETF, the journey of Ethereum ETF is full of more challenges. Since Ethereum raised funds through ICO in 2014, this method may make ETH be regarded as an asset with securities attributes. At the same time, the issuance of Ethereum is closely linked to the activity of the network, and there is no theoretical upper limit on the total amount, which further arouses market concerns about its securities attributes. The SEC is also worried about the risk of market manipulation caused by the high concentration of ETH holders.

However, these challenges have not stopped the development of Ethereum ETF. Thanks to the joint efforts of Ark Invest, 21Shares, BlackRock and other companies, they deleted the pledge part in the ETF proposal to reduce the risk of ETH being regarded as a security. This strategy is not only a positive response to the SEC's regulatory requirements, but also demonstrates the cryptocurrency industry's firm pursuit of self-regulation.

The impact of Ethereum ETF approval

• Price boost and market confidence: The approval of Ethereum ETF has had a significant boosting effect on ETH prices. After the announcement, ETH prices fluctuated sharply for a short period of time, and then achieved a sharp rise, breaking through the $3,900 mark. According to Standard Chartered Bank's forecast, the launch of the spot Ethereum ETF is expected to attract millions of Ethereum inflows in the first 12 months after approval, with a total value of up to tens of billions of dollars.

• Stimulate the general rise of altcoins: The approval of Ethereum ETF has also brought positive effects to the altcoin market. Since the vast majority of altcoins in DEX (decentralized exchanges) use ETH as a trading pair, the rise in ETH prices will drive the passive rise of altcoins. This not only injects new vitality into the altcoin market, but also provides investors with more diversified investment options.

• Market vitality and liquidity enhancement: The launch of Ethereum ETF will bring more liquidity and vitality to the market, indicating that the cryptocurrency market will usher in more capital inflows and broader development space. Traditional investors can participate in Ethereum investment more conveniently through ETF, a familiar financial tool. This will help expand Ethereum's investor base, promote the development of its ecosystem, and further promote the prosperity of the cryptocurrency market.

• Positive signal of the regulatory environment: The approval of the Ethereum ETF also reflects the positive change in the attitude of regulators towards cryptocurrencies. This means that the cryptocurrency market is expected to receive clearer regulatory guidance and a more friendly policy environment, thereby promoting the healthy development of the entire industry.

Future Outlook of Ethereum ETF

• The booming development of cryptocurrency ETFs: The successful approval of the Ethereum ETF will provide a strong reference for the application of other cryptocurrency ETFs. In the future, we are expected to see more ETF products related to mainstream cryptocurrencies approved for listing, such as the Ripple ETF. This will provide investors with more investment options and asset allocation solutions, and promote the diversified development of the cryptocurrency market.

• The deep integration of cryptocurrency and traditional finance: With the approval of the Ethereum ETF, the integration of cryptocurrency and traditional finance will be further accelerated. In the future, we can foresee that more traditional financial institutions will enter the cryptocurrency market and launch more financial products and services related to cryptocurrency. This will help enhance the status and influence of the cryptocurrency industry and promote it to become an important part of the global economy.

• Continued improvement of investor confidence: The approval of the Ethereum ETF will continue to enhance investor confidence in cryptocurrency. As the market environment continues to improve and regulatory policies gradually become clear, investors will be more willing to invest in the cryptocurrency field. This will bring a steady stream of financial support to the entire industry and promote its continued innovation and prosperity.

3EX AI trading helps to make crypto trading intelligent

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The approval of the Ethereum ETF is a milestone event in the cryptocurrency market. It marks that after Bitcoin, Ethereum has officially entered the traditional financial field and has gained wider recognition and attention. Looking to the future, we have reason to believe that with the clear support of regulatory policies, the cryptocurrency market will usher in broader development space and investment opportunities.

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