Following a significant market downturn where Bitcoin plummeted to the $24,000 range on derivatives exchanges — marking the most significant liquidation event since the FTX fiasco — unexpected news emerged.
An exclusive report by Bloomberg, further shared by Yahoo Finance, revealed that the SEC is poised to approve Ether-Futures ETFs.
Will An Ethereum ETF Be Approved?
Just the headline was enough to induce a significant recovery in Ethereum’s price, surging from a dip of $1,550 on Binance – and an even lower trough of $1,465 on Bybit – to hover just below the $1,700 mark at the time this was reported.
While the ETH/BTC pair has seen a 1% increase for the day, ETH/USDT remains down by 6% over the last 24 hours, outperforming Bitcoin which has fallen by 7.5%.
However, the detailed content of the Bloomberg article paints a less definitive picture:
“The agency seems unlikely to obstruct the launch of these products, which would be built around futures contracts of the second-most dominant cryptocurrency. This is according to sources in the know. A range of companies, namely Volatility Shares, Bitwise, Roundhill, and ProShares, are among those that have submitted applications to introduce such ETFs. At this stage, it remains uncertain which of these ETFs might receive approval. Insider reports hint that a few could get the nod by October…”
With the potential confirmation regarding the approval of an Ethereum ETF not expected until October, some traders on social media suggest it might be premature to break out the champagne.
A Futures ETF for Bitcoin or Ether in the US isn’t perceived as positively for the cryptocurrency realm as a spot ETF would be.
A past official from the SEC recently voiced that the prospects for any form of Bitcoin ETF getting approval soon seem bleak, possibly not even until post-2024.
Crypto Prices Crash
Before the Ethereum ETF announcement, a massive sell-off in Bitcoin was triggered by two key factors: the bankruptcy filing of China’s Evergrande and the unverified chatter about Elon Musk’s SpaceX divesting its Bitcoin assets.
Following the sudden downturn, Ethereum’s value experienced a robust 10% surge, with the price currently stabilizing as the market digests the day’s tumultuous happenings leading to the daily closing.
To provide an update – Ethereum wrapped up the day priced at $1,680, while Bitcoin closed at $26,610.
