Key Points
- Ethereum’s price is increasing in anticipation of the US SEC’s decision on Spot Ethereum ETF applications.
- Grayscale Investments LLC and BlackRock Inc have filed applications for a Spot Ether ETF.
Ethereum (ETH), the leading web3 platform, is entering a crucial phase of the macro bull run. With a fully diluted valuation of approximately $396 billion and a daily average traded volume of roughly $11 billion, Ethereum has seen a 3% rally in the past 24 hours, trading around $3,249.
After closing last week on a positive note, Ethereum’s price is expected to retest its all-time high soon. Furthermore, short-term Bitcoin (BTC) holders are starting to distribute their profits into the altcoin market.
Spot Ethereum ETF Decision Imminent
The United States Securities and Exchange Commission (SEC) has a month until the official deadline for its decision on the Spot Ether ETF applications. The fund managers who were approved to offer Spot Bitcoin ETFs earlier this year are the same ones competing to offer Spot Ether ETFs.
The approval of Spot Bitcoin ETFs was largely influenced by the court, which required the US SEC to use the same criteria for ETFs as the previously approved futures. Given that US Ethereum futures have been around for several years, there’s a possibility the US SEC could follow a similar trend.
However, the SEC argues that Ethereum is more of a security than a commodity compared to Bitcoin. Some experts believe that the SEC might not approve the Spot Ether ETFs as other altcoins, such as Ripple-backed XRP, Solana (SOL), and Dogecoin (DOGE), could follow suit.
Grayscale Investments LLC filed its form S-3 prospectus with the SEC on April 23 to convert its Ethereum Trust to a Spot Ether ETF. Grayscale has now filed all necessary documents with the SEC, leaving the decision to the agency.
The company also filed an S-1 for a mini Ethereum ETF under the ticker ETH, similar to its BTC mini ETF that is still awaiting approval by the SEC.
On Tuesday, BlackRock Inc filed an amendment to its Spot Ether ETF application through form 19b-4. This follows the SEC’s delayed decisions on two Spot Ether ETF applications by Grayscale and Franklin Templeton.
Ethereum’s Price Action
Ethereum’s price is at a significant crossroads in its Bitcoin pair.
Crypto analyst Michaël van de Poppe predicts that the anticipated altseason will kick off as soon as the ETH/BTC pair rebounds from the current levels. Additionally, Bitcoin’s dominance has been impacting altcoins since early last year.
