Ether gets ETF approval from US regulator; experts predict volatility ahead

The US Securities and Exchange Commission (SEC) has granted approval to Nasdaq, CBOE, and NYSE for applications enabling exchange-traded funds (ETFs) holding Ethereum's native token, ETH. Although not yet cleared for trading, this marks a significant step toward that end. \r

Previously, such approval seemed unlikely, with ETF analyst James Seyffart suggesting skepticism just days before. Speculations arise that ETH ETF approval could trigger a 60 percent rally, akin to Bitcoin's surge following the introduction of BTC ETFs in January. Recent data indicates increased exposure to ETH compared to Bitcoin among cryptocurrency traders. However, heightened volatility looms, with CryptoQuant reporting significant ETH inflows to exchanges. \r

Meanwhile, Ether experienced a dip below $3,800, purportedly due to a sell-off by Symbolic Capital Partners. Market participants anticipate that ETH ETFs will offer similar benefits to investors as BTC ETFs, according to Rob Marrocco, global head of ETP listings at Cboe Global Markets, citing the precedent set by spot Bitcoin ETF approvals following a court challenge against the SEC last year.