- Ethereum and Ethereum Classic have been in a strong uptrend this week.
- The two jumped after the SEC approved a spot Bitcoin ETF as expected.
- Analysts expect filings on Ethereum ETFs in the coming days.
Ethereum (ETH) and Ethereum Classic (ETC) prices held steady on Thursday after the Securities and Exchange Commission (SEC) approved eleven Bitcoin ETFs. ETC, the second-biggest cryptocurrency in the world, soared to a high of $2,630, its highest point since May 2nd, 2022. Similarly, the ETC soared to $27.73 (September 2022 high).
The biggest crypto news of the year so far was the decision by the SEC to approve eleven Bitcoin ETFs by companies like Blackrock, Franklin Templeton, Invesco, and Ark Invest. This was a major decision because it will lead to more institutional demand for Bitcoin in the coming years. It was also a crucial thing because it had rejected several funds a while back.
ETH, and ETC prices rose after the decision because analysts believe that these companies will also apply for their ETFs. Blackrock has already filed for an Ethereum ETF, that will likely be known as the iShares Ethereum Trust. Also, Grayscale will likely file to transition its Grayscale Ethereum Trust (ETHE) into an ETF. Indeed, ETHE’s market price to NAV has moved from a discount to a 13.7% premium.
Read more: How to buy Ethereum Classic.
An Ethereum ETF makes sense because it is the second-biggest cryptocurrency in the world with a market cap of over $309 billion. It is also one of the most liquid tokens in the industry. Also, it is the most useful as it powers key players in industries like DeFi, NFTs, and gaming.
The challenge with Ethereum ETFs is that they will attract more scrutiny from the SEC because of the merge event that happened in 2022. This merge helped to transition Ethereum from a proof of work (PoW) network into a proof of stake (PoS). This means that, instead of being mined, it uses validators to confirm transactions.
As a result, the SEC believes that there should be more investor protection because it believes that it is a financial security. Therefore, we can’t rule out a situation where the SEC initially rules out against Ethereum ETFs.
Ethereum Classic, on the other hand, surged because of its close association with the main Ethereum. For starters, Ethereum Classic emerged from the original Ethereum and it uses the initial technologies like PoW. While ETC is less liquid, analysts believe that the SEC will approve its ETF if there is an application.
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