Spot Ethereum ETF Approved: A New Era for Crypto Trading
- The Spot Ethereum ETF was approved by the SEC on July 22, with trading starting on July 23.
- Ethereum's price showed little reaction to the news, trading at $3,465.80 after a slight decline.
- Ethereum-based meme coins like Shiba Inu and Pepe showed mixed reactions, with some gains and losses.
Spot Ethereum ETF Approved: When to Begin Trading?
On July 22, the long-awaited Spot Ethereum ETF was officially approved by the US Securities and Exchange Commission (SEC). The 424(b) forms are rolled out and all the issuers are expected to initiate trading on July 23 at 9:30 AM, New Jersey time.
Eric Balchunas, a senior ETF analyst at Bloomberg took to X (formerly Twitter) to inform the same, followed by the trading timings.
Source: X
Furthermore, the post-waiver fee will range between 0.25% to 2.50% whereas the starting fee is recorded to go high up to 2.50%. Moreover, no major influence of the news was observed on Ethereum (ETH) price, trading at $3,465.80, after an intraday decline of 0.51% with $417,738,128,062 in market cap and $19,656,110,014 in 24-hour volume.
Community’s Reaction to The News
The action’s reaction was recorded on the Ethereum Name Service (ENS), a decentralized naming protocol on the Ethereum blockchain. Within a day, the ENS price spiked by 6.11%, hovering at $27.91 at the time of writing.
Source: CoinMarketCap
Additionally, no major waves were recorded in the Ethereum-based meme coins such as Shiba Inu (SHIB), Pepe (PEPE), and MAGA (TRUMP). TRUMP dropped by 8.85% in a day, currently trading at $6.41, whereas SHIB recorded a decline of 1.45%, standing at $0.00001744 at press time. However, Shiba Inu’s TREAT token launch rumor has caught the attention of individuals recently.
PEPE, alternatively, showcased a slight gain of 1.65%, hovering at $0.00001227 with a market cap of $5,163,212,781 and a 24-hour volume of $734,252,144.
Furthermore, Wintermute, a leading algorithmic trading firm focused on building liquid and efficient markets in digital assets, made a clear prediction for the ETFs. According to the firm, spot Ethereum ETFs will attract over $4 billion in capital inflow in the next year, followed by the ETH price rising by 12%.
After the approval, the crypto community is now heading toward a Spot Solana ETF, expected to get approval in 2025.
Conclusion
The approval of the Spot Ethereum ETF by the SEC marks a significant milestone in the crypto market. While the news had minimal immediate impact on Ethereum's price, it sparked notable reactions within the community, particularly boosting the ENS. Predictions from industry experts suggest substantial capital inflows and potential price increases for Ethereum. As the crypto community looks forward to future developments, such as the anticipated Spot Solana ETF, the landscape of cryptocurrency trading continues to evolve.
