The Securities and Exchange Commission (SEC) has finally given the green light for spot exchange-traded funds (ETFs) that hold Ethereum (ETH-USD), which will make it easier for Americans to invest in the second-largest cryptocurrency and allow trading to start as soon as Tuesday.
The move comes after U.S. regulators approved Bitcoin (BTC-USD) ETFs in January that have since attracted tens of billions of dollars. Now, Ethereum ETFs can be bought and sold through regular brokerage accounts. This is likely to make the cryptocurrency more appealing to everyday investors.
Interestingly, just a few months ago, it didn’t seem like this approval would happen. But in late May, the SEC started talking with potential ETF issuers and approved a key filing on May 23, which paved the way for today’s decision. Interestingly, the price of Ethereum is down more than 2% at the time of writing.
Is ETH Going to Boom?
When using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for Ethereum. Indeed, the summary section pictured below shows that 15 indicators are Bullish, compared to two Neutral and five Bearish indicators.
In addition, Ethereum has greatly outperformed both the SPDR S&P 500 ETF Trust (SPY) and Bitcoin since 2019, according to data from TipRanks. In fact, $10,000 invested in Ethereum would be worth more than $247K today compared to over $173K for Bitcoin and almost $22K for SPY, as per the image below. Although past performance isn’t indicative of future results, the fact that ETH is smaller than Bitcoin does provide it with the potential to continue outperforming.
