The probability of Ethereum spot ETF being approved is 70%

The U.S. SEC will make decisions and approve five Ethereum spot ETFs before the end of May, but it may also be postponed to August to make a final decision.

In addition, the final decision deadline for three Ethereum spot ETFs that have applied is the end of May 2024. Before that, the US SEC needs to make a final decision on whether to approve or not. They are due to the VanEck Ethereum ETF, Ark 21Shares Ethereum ETF and Hashdex Ethereum ETF respectively, withthe final deadlines being May 23, May 24 and May 30.

According to Cointelegraph, the SEC must also make a decision on Grayscale’s application before June 18 and July 5. A decision was made on Invesco's application. Applications from Fidelity and BlackRock must be decided by August 3 and August 7.

Bloomberg ETF analyst Eric Balchunas said he estimates there is a 70% chance that the ETH spot ETF will be approved in May.

Coinbase also said that the application for an Ethereum spot ETF may be approved soon.

The Ethereum Spot ETF is an investment fund listed and traded on a stock exchange with the objective of tracking the price performance of Ethereum (ETH).

Unlike buying or holding ETH directly, investors can indirectly gain exposure to ETH price fluctuations by purchasing shares of Ethereum spot ETFs , without the need to manage or store ETH. In this way, investors can avoid some of the risks and obstacles associated with direct trading of ETH, such as security, digital wallets, regulatory uncertainty, lack of liquidity, etc.

Simply put, the Ethereum spot ETF is an investment fund listed and traded on a stock exchange. It directly holds Ethereum as the underlying asset. Track the price performance of Ethereum. This investment method provides investors with a convenient and safe way to participate in the cryptocurrency market without having to worry about security and digital wallets.

It can also be said that it allows investors to more easily access Ethereum, an innovative and potentially huge crypto asset, without requiring complex technical knowledge. or face high transaction costs. Additionally, because the Ethereum spot ETF trades on traditional stock exchanges, it is also subject to stricter regulatory and transparency requirements, increasing investor confidence and protection.

With giants entering the game, can Ethereum spot ETF be far behind?

The application for an Ethereum spot ETF comes in the context of a Bitcoin spot ETF. Bitcoin spot ETF is an ETF that tracks the price of Bitcoin. Its application went through years of setbacks and delays until January 11, 2024, when the U.S. Securities and Exchange Commission (SEC) finally approved the listing and trading of 10 Bitcoin spot ETFs. This is a historic breakthrough for the cryptocurrency market and opens the door to ETF applications for other cryptocurrencies.

According to Yahoo Finance data cited by The Block, the trading volume of the U.S. spot Bitcoin ETF reached US$1 billion on the second day.

The success of the Bitcoin spot ETF shows that the market has strong demand and interest in cryptocurrency ETFs, especially those that are traditional and conservative , institutional investors, who hope to participate in cryptocurrency investment through a regulated, convenient, and low-cost channel.

After the Bitcoin spot ETF was approved, the industry immediately promoted the application for the Ethereum spot ETF because the market structure of Ethereum is similar to the trading CME futures market and spot market.

It can be said that the market value of Ethereum is second only to Bitcoin, occupying the second place in the cryptocurrency market, and its trading volume is also very active, with daily More than $10 billion. Ethereum's technological innovation and ecological development are also very rapid, supporting countless DApps and decentralized finance (DeFi) projects, providing more value and possibilities for the cryptocurrency market.

According to public information, 6 Ethereum spot ETF applications have been submitted to the SEC, respectively from the following institutions:

Asset management giant BlackRock has applied for an ETF called iShares Ethereum Trust;

Grayscale, a cryptocurrency professional institution, applied for an ETF by converting its existing Ethereum Trust (Grayscale Ethereum Trust, ETHE) into an ETF;

Asset management company Vaneck, the ETF it applied for is called Vaneck Ethereum Trust;

Investment The management company Invesco cooperates with Galaxy Digital, and the ETF it applies for is called Invesco Galaxy Ethereum Trust;

Investment management companies ARK Invest and 21Shares Cooperation, the ETF it applied for is called ARK 21Shares Ethereum Trust;

Digital asset management company Hashdex, the ETF it applied for is called Hashdex Hashdex Ethereum Trust.

These institutions have rich experience and good reputation in the cryptocurrency field, and their applications show their confidence and expectations for the Ethereum spot ETF.

Their application also referred to the application process and requirements for Bitcoin spot ETFs, striving to comply with the SEC's standards and expectations. For example, they all chose Coinbase, the largest cryptocurrency exchange in the United States, as the custodian of their ETH to ensure the security and compliance of their ETH.

They have also signed market surveillance agreements with Coinbase to share market data and regulatory information with the SEC to prevent market manipulation and fraud. They also pointed out that Ethereum futures have been listed on the Chicago Mercantile Exchange (CME) and that an Ethereum futures ETF has been approved, which shows Ethereum’s market maturity and regulatory compliance.

Ethereum’s future star sea

If Ethereum If the spot ETF is approved by the SEC, it will have a significant impact on Ethereum itself, the cryptocurrency market, and the traditional financial market. Specifically, it can be analyzed from the following aspects:

The approval of Ethereum spot ETF will enhance the visibility, credibility and legitimacy of Ethereum, making it Closer to mainstream financial recognition and acceptance. This will attract more funds into Ethereum, driving up its price and market capitalization.

At the same time, the approval of Ethereum spot ETF will also promote the technological innovation and ecological development of Ethereum, motivating more developers and users to participate In the Ethereum platform and DApp, increase its network effects and value capture. Additionally, the approval of an Ethereum spot ETF will also provide additional exposure and opportunities for other Ethereum-based cryptocurrenciessuch as ERC-20 tokens and NFTs, expanding their market size and influence.

The approval of the Ethereum spot ETF will provide traditional financial markets with a new, potentially diversified investment vehicle, increasing their exposure and participation in cryptocurrencies.

This will promote the interaction and integration of traditional financial markets and cryptocurrency markets, and accelerate the popularity and application of cryptocurrency. At the same time, the approval of the Ethereum spot ETF will also create precedents and conditions for ETF applications for other cryptocurrencies, broaden the variety and scale of cryptocurrency ETFs, and enrich investors’ choices and opportunities.

Written at the end

Ethereum spot ETF is a An ETF that tracks the price of Ethereum, its application was submitted after the Bitcoin spot ETF was approved. Currently, 6 applications for Ethereum spot ETF have been submitted to the SEC.

If the Ethereum spot ETF is approved by the SEC, it will have a significant impact on Ethereum itself, the cryptocurrency market and the traditional financial market, Promote Ethereum’s popularity, credibility, technological innovation, ecological development, price increase and market value growth, attract more funds and investors to participate in cryptocurrency investment, and promote the interaction and integration of traditional financial markets and cryptocurrency markets, Accelerate the popularity and application of cryptocurrency.