SEC Approves Ethereum ETFs Amid Market Volatility

SEC Approves Ethereum ETFs Amid Market Volatility

By: Eva Baxter

The U.S. Securities and Exchange Commission (SEC) has given the green light to Ethereum exchange-traded funds (ETFs) via delegated authority, marking a landmark decision that could influence broader cryptocurrency adoption. Unlike Bitcoin ETF approvals, which underwent commissioner voting, this decision bypassed a public vote, allowing the approval through more routine procedural channels. This has stirred conversations about the transparency and political dynamics within the SEC, as noted by analysts like James Seyffart.

Nevertheless, the approval did little to ignite the broader crypto market. Data from CryptoSlate reveals significant market volatility, with major digital assets such as Ethereum and Bitcoin dropping by over 3%. Experts like Julio Moreno from CryptoQuant argue that the market had already priced in the anticipated approval, leading to a 'sell-the-news' scenario. Additionally, the ETFs' delayed launch has dampened immediate market reactions, requiring further SEC clearance.

The market's tepid response resulted in over $400 million in liquidations, deeply affecting Ethereum long traders who were betting on a price surge from the ETF news. With more procedural steps pending before full ETF launches, the approved Ethereum ETFs may yet signal a promising path for future crypto ETFs despite the current market downturn.

Get In Touch

[email protected]

Follow Us

© BlockBriefly. All Rights Reserved.