$ETH This is the Impact of Ethereum Spot ETF Approval on Cryptocurrencies
The approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) in January 2024 triggered a sharp rise in Bitcoin prices. Additionally, attention on spot Ethereum ETFs is also increasing.
The reason is, if approved, it is predicted that this could also trigger an increase in the cryptocurrency market. However, is there a chance to make money on the eve of the spot Ethereum ETF approval decision scheduled for May 23, 2024?
In the spot market, assets such as commodities, currencies, and securities are exchanged and received on the spot. The same is true for this highly anticipated spot Ethereum ETF, as it offers an easier and more transparent approach than futures ETFs that purchase derivatives without directly owning the assets.
By purchasing cryptocurrencies directly, ETFs track the price of the underlying cryptocurrency more accurately. Because the purchasing process is easier, such investments offer greater profitability and lower management costs. This is the reason for the huge public interest surrounding the approval of a spot Ethereum ETF, which is scheduled for May 23, 2024. So, what's with this approval?
The US Securities and Exchange Commission (SEC) remains concerned that cryptocurrencies are often involved in fraud, can cause speculative bubbles, and have investors starting to assume that these types of currencies will be safer once approved. The new spot Bitcoin ETF was approved after the US Court of Appeals ruled against it in August 2023, which then forced it to take action.