Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum (ETH) is set to experience a significant rally of up to 75% following the surprising approval of spot ETH ETFs by the Securities & Exchange Commission (SEC). This unexpected decision comes after bipartisan US lawmakers wrote a letter urging SEC Chair Gary Gensler to give the green light to these ETFs. The approval of the ETFs is expected to have a greater impact on Ethereum than it did on Bitcoin when it was approved.

In addition to the ETF approval, Hong Kong regulators are in discussions about allowing issuers to offer ETH staking to investors, as they seek ways to attract more subscriptions and trading volume for spot Ethereum ETFs.

However, it is necessary to clarify that the approval of the ETFs does not mean they will start trading immediately. The 19b-4 approval is just the first step, and there still needs to be an approval on the S-1 documents, which could take weeks or even longer.

Experts believe that the spot ETH ETF S-1 applications will take time to receive approval from the SEC, potentially weeks or months. A recent tweet by James Seyffart, an analyst, emphasizes the need for patience, stating that it could take a couple of weeks or longer before more information is available.

The approval of spot ETH ETFs was prompted by a letter from a bipartisan group of Congress members to SEC Chair Gary Gensler, advocating for the approval of these applications and eventually expanding to other digital assets. They argue that exchange-traded products (ETPs) offer regulated access to crypto investments through transparency and reporting requirements. They also suggest that the same principles used in approving spot Bitcoin ETFs should apply to spot ETH ETFs, as the legal considerations for both assets are similar.

While Ethereum’s popularity and price have been rising, the spot Ethereum ETFs in Hong Kong have not seen significant subscriptions or trading volume. Hong Kong’s Securities & Futures Commission (SFC) is currently discussing the option of allowing staking features to attract more investors.

In terms of technical analysis, Ethereum is currently trading around $3,818 after a brief drop from $3,952. The decline was likely caused by selling pressure from MEV trading firm Symbolic Capital Partners. Despite the dip, the $3,730 support level proved strong enough to withstand the sell-off. Experts predict that with the SEC’s approval, Ethereum could break resistance and surpass its all-time high of $4,878. Some analysts even speculate that Ethereum may experience a larger rally given its smaller market capitalization compared to Bitcoin.

Overall, the approval of spot ETH ETFs by the SEC has generated significant excitement and anticipation in the Ethereum community, with expectations of a substantial rally in the near future.