With the launch of spot Bitcoin ETF trading, a general increase is observed in the crypto market.
Not by chance, tokens of great importance, including Ethereum, Solana, Cardano, XRP, and Avalanche, have recorded increases of over 10% in the last 24 hours. Let’s see all the details below.
Spot Bitcoin ETFs revitalize the entire crypto landscape
As anticipated, with the long-awaited conclusion of the negotiations for spot Bitcoin ETFs, we are witnessing a significant increase in the crypto market, with numerous prominent tokens recording increases of over 10%.
In response to the approval of Bitcoin spot ETFs by the Securities and Exchange Commission, cryptocurrency investors around the world are rejoicing.
Overall, the agency has approved 11 ETFs, traded on prestigious exchanges such as NYSE, Nasdaq, and Cboe.
At the same time, important digital tokens are experiencing significant increases.
Ether, the second cryptocurrency by market capitalization, recorded an increase of almost 12% at 10:05 ET.
The Bloomberg Intelligence analyst, Eric Balchunas, suggested that there is a 70% probability of a spot ETF on Ethereum being approved in May.
In the same way, other key tokens are showing significant increases. Solana is growing by 14%, XRP is increasing by 11%, while both Cardano and Avalanche are marking an increase of over 20%, as indicated by The Block Price Page.
However, the surge in XRP could also be attributed to the announcement by Ripple Labs, the cryptocurrency payment company. In fact, it plans to repurchase shares worth $285 million from its initial investors.
Move that will value the company at $11.3 billion.
The television analyst of CNBC, Jim Cramer, positively commented on the approval of ETFs, defining it as a “victory”.
In addition, it argues that it reflects the expectations and demands of retail investors who desired greater security for their cryptocurrency investments.
New regulations and market opportunities
The chairman of the US SEC, Gary Gensler, has issued a public statement following the approval of certain Spot Bitcoin ETP requests.
His statement emphasizes the SEC’s commitment to the existing legal framework, ensuring protection for investors and imposing clear regulations.
Gary Gensler has indeed announced important measures to protect investors of Spot Bitcoin ETP.
Among these are accessibility to complete information, exclusive listing on legally registered stock exchanges, and the implementation of controls to prevent market manipulation and illicit activities.
The SEC is therefore focused on safeguarding investors. Furthermore, it reserves the right to investigate alleged fraud or market manipulation and to supervise campaigns on social media platforms.
The Commission is actively working to ensure equal conditions and promote competition and fairness in the emerging market of Bitcoin ETPs.
Clear prospects for spot ETFs on Ethereum
The expert sector anticipates a direct path towards the approval of spot ETFs on Ethereum during 2024. In particular, some forecasts indicate the start of trading as early as the second quarter.
Important actors such as BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are submitting applications to the United States Securities and Exchange Commission (SEC).
The approval has already had a positive impact on the price of Ethereum, recording an increase of almost 3% and surpassing $2,500 for the first time since May 2022.
Although some forecasts indicate that spot ETF trading on Ethereum will begin in the third quarter of 2024, Hashdex, one of the applicants, suggests the possibility of starting trading as early as the second quarter.
The success story of SEC-approved spot ETFs on Bitcoin has inspired the confidence of Steven McClurg, chief investment officer of Valkyrie Funds, who would not be surprised if spot ETFs on Ethereum and XRP were launched subsequently to those on Bitcoin.
James Seyffart, ETF analyst at Bloomberg, is optimistic about the approval of Ethereum spot ETFs by the SEC.
Specifically, basing its confidence on the implicit recognition of Ethereum as a commodity by the regulatory body, highlighted by the approval of Ethereum futures ETFs in September.
