Milestone for Ethereum Spot ETF

At about 5 a.m. Beijing time on May 24, the U.S. Securities and Exchange Commission (SEC) approved key regulatory documents related to the spot Ethereum exchange-traded fund.

This marks a milestone in the approval of the Ethereum spot ETF.

Next, the Ethereum spot ETF needs to approve the ETF filing documents for formal trading on the exchange before investors can trade. However, this step of approval is basically just a matter of time.

I remember that I was quite pessimistic in my article some time ago, thinking that the approval of the Ethereum spot ETF might have to wait until next year if Trump can be elected.

This 180-degree turn is really overwhelming.

We know that the current SEC chairman's attitude towards crypto assets has been publicly negative in the past one or two years. For Ethereum, he has repeatedly questioned the conflict between its token issuance, especially the staking income and the Howey test.

Even when faced with explanations such as "Ethereum staking is for maintaining network security rather than pure commercial profit", he basically did not respond positively.

Therefore, I have always believed that as long as he is in office, the hope of the Ethereum spot ETF passing is very slim.

Why has the SEC changed its attitude towards Ethereum so quickly recently?

I think about it and can only think that it is mainly due to political pressure?

Facing the upcoming presidential election, Trump has publicly expressed his support for crypto assets and has also publicly accepted donations of crypto assets on the website.

This move has aroused considerable favor among young people in the United States.

Faced with this pressure, or perhaps in order to attract more young people to the Democratic Party, the SEC had to take a 180-degree turn in its attitude towards the Ethereum spot ETF?

In addition, the entanglement and collusion of interests between Wall Street and the SEC may have played a significant role in this.

There is no need to elaborate on the strong interest of these institutions in the Ethereum spot ETF. They have also been making various efforts for the passage of this ETF. BlackRock has repeatedly publicly stated its determination to vigorously deploy the crypto ecosystem.

In order to eliminate the current chairman's doubts about Ethereum staking, these institutions even promised not to carry out Ethereum staking operations in the documents submitted this time.

Now, all these efforts have paid off.

I have listed three important factors for the possible performance of Ethereum in the next bull market:

Can an innovative application ecosystem break out in the Ethereum ecosystem?

Can the Ethereum spot ETF be passed?

Will the Federal Reserve cut interest rates?

The first factor is the internal factor that determines whether the Ethereum price can break out. We cannot predict this, but can only continue to track and observe all possible new signs and new trends in the ecosystem.

The second and third factors are external factors that determine whether the price of Ethereum can explode. The second factor is the switch that determines whether the external factors can work, and the third factor is the fuse that determines whether the external factors can work.

Now the switch of the external factors has been completely turned on.

What about the fuse of the external factors? It still depends on how the data performs. If the inflation and employment data in the United States continue to improve, interest rate cuts may occur in the second half of the year, and the fuse will be ignited at that time.

In the next bull market, if interest rate cuts can occur, there is still hope that the price of Ethereum will reach 10,000 US dollars. And if the Ethereum ecosystem can also explode with innovative application ecosystems, the price of the currency is entirely possible to create a greater miracle.