How will Ethereum price react to Bitcoin ETF approval?
A potential Bitcoin ETF approval should lift all boats including Ethereum as ETH price eyes 75% upside in the months ahead.
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The U.S. Securities and Exchange Commission (SEC) is moving closer to its Bitcoin
ETF decision deadline on Jan. 10, with the market hopeful about approval. This pivotal event could have wide-ranging implications on the crypto market, including the second-largest cryptocurrency, Ethereum
Ethereum ETF hopes
Approving a Bitcoin ETF could set a regulatory precedent to ease the path for other crypto-based ETFs. The reasoning is that a Bitcoin ETF approval would likely involve establishing a framework that could be applicable to other cryptocurrencies, including Ethereum.
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In December 2023, the SEC delayed its decision on several pending Ethereum ETF applications in the U.S. to May 2024. This includes the Hashdex Nasdaq Ethereum ETF, the Grayscale Ethereum Futures ETF, the VanEck spot Ethereum ETF, and the spot Ethereum ETF lodged by Cathie Wood’s ARK Invest and 21Shares.
These delays are part of the SEC’s process, which involves gathering public input before deciding whether these ETFs should be listed. Nonetheless, they also appear amid the commission’s attempt to categorize some proof-of-stake (PoS) cryptocurrencies as securities.
Interestingly, Ethereum is not named as a security in any of the SEC’s recent lawsuits targeting crypto exchanges. The commission has also not challenged Ethereum’s classification through the ETF registration process with the Commodity Futures Trading Commission (CFTC).
That raises the potential of seeing a spot Ethereum ETF approved in the U.S. by May 2024, a likely boost for ETH prices.
