Ethereum ETF Approved: Crypto Market Welcomes Major Milestone

In the early morning of May 24, the U.S. Securities and Exchange Commission (SEC) unexpectedly approved the application for an Ethereum spot ETF, marking an important step in the further integration of the crypto market with traditional finance.

Specifically, the SEC approved the 19b-4 forms for Ethereum spot ETFs, which include several well-known institutions. While this is a key step, ETF issuers still need to wait for the S-1 registration statement to take effect before they can officially begin trading. The SEC has just begun discussions with issuers regarding the S-1 forms, a process that may take several weeks. One trading platform has taken the lead by submitting a revised S-1 application form.

This approval is a milestone moment for ETH and an important juncture for the crypto market to align with traditional finance. Just a week ago, the market widely believed that it was unlikely the SEC would approve these ETFs, but the reality has unexpectedly changed.

The SEC's attitude has made a 180-degree turn in a short period of time. Previously, the SEC seemed to have not engaged in in-depth communication with the Ethereum ETF issuers, and the market's expectations for approval dropped to around 10%. However, the situation suddenly changed recently. The SEC has begun to actively engage with the issuers, requesting modifications and resubmission of the application materials.

There may be multiple factors behind this shift. The political considerations of an election year in the United States may be an important factor driving the approvals. Recently, the U.S. government has sent positive signals to the crypto market. The House of Representatives passed a bill aimed at adjusting the cryptocurrency regulatory framework, and the Senate also overturned a regulation that was unfavorable to the encryption industry.

Nevertheless, analysts expect that the appeal of the Ethereum ETF may not be as strong as that of the Bitcoin ETF. Its asset size is expected to reach 10% to 15% of the Bitcoin ETF, approximately 5 billion to 8 billion dollars.

Looking back on the journey of Ethereum entering the traditional financial market, it has been more than three years since the Chicago Mercantile Exchange launched Ether futures in 2021, followed by multiple institutions applying for Ethereum ETFs in 2023, and now the SEC has approved it. During this period, there were twists and turns, including regulatory lawsuits, multiple applications, and withdrawals.

Today, with the SEC approving the Ethereum ETF, its official listing and trading is just around the corner. This is not only an important milestone in the development of Ethereum, but also signifies that the entire crypto market has taken a crucial step towards the mainstream financial system.