One week after the approval of the 19b-4 filings for Ethereum exchange-traded funds, the price of the cryptocurrency remains trading near $3.800.
El Ethereum price experienced a significant rise in the days leading up to the approval of spot ETFs in the United States.
In the week leading up to May 23, when the Securities and Exchange Commission (SEC) was set to rule on these exchange-traded funds, ether rose more than 25% on the market, reaching a price of almost $3.900 per unit.
However, while the positive outlook on regulatory approval of spot ETFs helped boost the price of Ethereum, the volatility experienced by the cryptocurrency after these funds received regulatory approval has not been as significant as some had expected.
The reason behind the almost sideways movements in the price of Ethereum in the last week may be related to the decision taken by the SEC. So far, the US markets regulator has only given the green light to 19b-4 filings of spot funds, leaving the approval of the listing of these investment instruments for later.
19b-4 filings authorize stock exchanges to list ether spot exchange-traded funds for trading. However, in order for these funds to begin trading on the markets, the SEC must approve the S-1 filings of the fund issuers. These latter filings are documents that contain all the information related to the operation and operation of these ETFs, including the risk profile.
Recently, fund issuers such as BlackRock, Fidelity, Grayscale, among others, have been sending updates to these filings to the SEC, in order to comply with the regulator's requirements.
Ethereum price rose modestly
According to data from CoinMarketCap, the gains reflected in the Ethereum price In the last week, since spot ETFs were approved in the US market, they have been quite modest.
CoinMarketCap’s price chart shows that the Ethereum network’s native cryptocurrency is up less than 1% since May 23. ETH went from trading around $3.770 to trading above $3.790 at the time of writing.
Source: CoinMarketCap
However, despite the current modest reaction of the Ethereum price to the ETF approval, analysts predict that the real bullish momentum for the cryptocurrency could come once the approved funds begin trading on the market, possibly between June and August.
Ethereum spot ETFs are expected to see strong demand in the market. The regulatory approval of these funds represents an important milestone for the cryptocurrency and the market in general, as it not only recognizes that Ethereum is not a security, but also shows the significant change of attitude that the current US administration is having in relation to the regulation of cryptocurrencies and digital assets.
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