US regulators approve 8 Ethereum ETFs, crypto market welcomes new opportunities

On May 23, the U.S. Securities and Exchange Commission (SEC) approved the applications for eight Ethereum ETFs, which are planned to be listed on Nasdaq, the New York Stock Exchange Arca, and the Chicago Options Exchange BZX. This move is seen as an important step towards the reality of spot Ether (ETH) exchange-traded funds following the approval of Bitcoin ETFs in January this year. This article will explore the background and aftermath of this approval, the latest developments in U.S. crypto regulation, and the opportunities it brings to the market.

1. The process before and after the SEC approval

Since the approval of the Bitcoin ETF, the fate of the Ethereum ETF has been a focal point of the crypto community. Unlike Bitcoin, Ethereum does not have a theoretical total supply cap. Under the PoS mechanism, the issuance of ETH is related to network activity, and the actions of large holders may cause price fluctuations. This has led the SEC to be concerned that the high concentration of Ethereum holders may exacerbate the risk of market manipulation.

To address the SEC's concerns, potential spot Ether ETF issuers, including several well-known financial institutions, have updated their documents to confirm that they will not stake ETH for profit. This move effectively reduces the risk of Ethereum being classified as a security.

Although the SEC has approved the 19b-4 forms for these ETFs, they have not yet received trading authorization. Issuers will also need to wait for the S-1 registration statement to become effective before trading can begin. Industry experts expect that it may take several weeks to several months from approval to formal trading.

2. New Trends in U.S. Crypto Regulation Policies

The approval of this Ethereum spot ETF reflects a shift in the attitude of U.S. regulators towards cryptocurrency policy. The SEC seems to be attempting to seek a balance in the regulation of Ethereum, distinguishing the essence of Ethereum as a digital currency from the financial activities it may be involved in that could involve securitization.

Recently, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act," aimed at providing a set of rules for the regulatory system of digital assets. The bill clearly defines which digital assets are regulated by the Commodity Futures Trading Commission (CFTC) and which are regulated by the Securities and Exchange Commission (SEC), reflecting the importance of the different legal natures of crypto assets.

These developments mark a significant shift in the regulatory landscape for cryptocurrency in the United States, as regulators attempt to find a balance between promoting innovation and protecting investors.

3. The opportunities for development brought by the approval of the crypto market.

The approval of the Ethereum ETF had a huge impact on the market. Data shows that as a result of this event, the price of Ether surged significantly in a short period of time, triggering a large amount of trading and liquidations.

Industry experts predict that after the approval of the spot Ethereum ETF, it may attract a large influx of funds. This means that investors can gain exposure to Ethereum by purchasing ETF shares without the need to directly hold or manage encryption, thereby expanding the participant base in the market.

This trend may lead to increased liquidity in the crypto market and more stable prices. At the same time, the launch of the Ethereum ETF could have a positive impact on the entire crypto ecosystem, including driving up the altcoin market.

The introduction of ETFs may also bring recognition of regulatory compliance, enhancing investor confidence. In the future, corresponding spot ETFs for other digital assets may also emerge one after another, making cryptocurrency assets a new asset class that becomes an investment choice accepted by more ordinary investors.

Overall, the approval of the Ethereum ETF brings broader recognition and participation opportunities for the crypto industry, and is expected to have a positive and far-reaching impact on the cryptocurrency trading market.