Ethereum ETF Nears SEC Approval — ETH Jumps 9% in 24 Hours
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Ethereum (ETH) surged nearly 9% on Thursday after sources close to the U.S. Securities and Exchange Commission (SEC) revealed that the agency is preparing to greenlight the first spot Ethereum ETF, sending bullish signals across the market.
The price of ETH climbed to $3,540, marking its highest level since early May. Investors are now speculating that approval could come as early as next week.
“The SEC has signaled informal approval to at least two issuers,” said Bloomberg ETF analyst James Carter. “It looks like we’re finally entering the ETH ETF era.”
Table of Contents
Wall Street Prepares for Inflows
Several major firms — including BlackRock, Fidelity, and VanEck — have pending applications for a spot Ethereum ETF. If approved, it could open the door for billions of dollars in institutional capital to flow into Ethereum.
“This is a game-changer,” said Clara Nolan, head of crypto strategy at Galaxy Digital. “It legitimizes Ethereum in the eyes of traditional investors.”
Ethereum-based investment products have already seen a 75% increase in weekly inflows over the past month, according to CoinShares.
SEC’s Changing Tone
The shift in regulatory tone follows the May approval of multiple spot Bitcoin ETFs, which saw record-setting inflows and sparked renewed interest in digital asset markets.
Experts believe the SEC’s warming stance may be due to increasing pressure from both institutional investors and Congress to provide clearer guidelines for crypto investments.
“With the 2024 election behind us, the SEC is under political and financial pressure to support innovation,” said crypto legal expert Mark Voss.
ETH Ecosystem Sees Renewed Momentum
Beyond the ETF news, Ethereum’s fundamentals continue to strengthen. Network gas fees have remained stable post-upgrade, and ETH staking is at an all-time high of 33 million ETH.
Major DeFi protocols like Lido, Aave, and Uniswap also reported increased activity this week, signaling rising confidence in Ethereum’s ecosystem.
What Comes Next?
If the ETF is approved, ETH could rapidly climb past the psychological barrier of $4,000, analysts say. However, some warn of potential volatility following the announcement.
“Approval rallies are often followed by short-term corrections,” said crypto trader Alex Rudd. “Still, the long-term upside for Ethereum remains strong.”
