Ethereum Price Shows Modest Rebound Ahead of Anticipated SEC Approval for ETH Futures ETF
The price of Ethereum has recovered slightly following Thursday night’s crash to as low as $1550.
An hour after the sharp drop in price, Bloomberg reported that the SEC is set to approve ETH Futures ETF.
Ethereum’s price then shot to $1710 before retracing to its current levels.
After the crypto market downturn on Thursday night, Ethereum (ETH) is showing a slight recovery.
This coincides with Bloomberg’s report indicating that the U.S. Securities and Exchange Commission (SEC) is set to grant approval for an ETH Futures Exchange-Traded Fund (ETF).
Along with Bitcoin’s crash to $25,000, the value of ETH experienced a sharp drop on Thursday night, plunging from $1786 to $1550 within a span of ten minutes.
In a subsequent development an hour later, Bloomberg cited individuals familiar with the matter that there is a likelihood of the SEC greenlighting the ETH Futures ETF. While this does not signify final approval, it is suggested that the regulatory body is not inclined to block the approval process.
This marks a victory for more than ten entities that have submitted applications to provide ETH Futures products. Among them are prominent names including Volatility Shares, Bitwise, Roundhill, and ProShares.
Ethereum’s price now shot to $1710 before retracing to its current levels of $1680 as of writing this. Bitcoin has also slightly bounced back from $25,000 to its current value of $26,370.
According to Finbold, over $1 billion was liquidated in the last 24 hours.
The potential for crypto ETFs continues to be a debated topic within the SEC’s halls, as a definitive rulebook for token classification has not yet been released.
Blackrock and Invesco insiders hint at a potential Bitcoin ETF approval in four to six months. However, recent reports from Bloomberg indicate that the SEC plans to extend its decision timeline for pending Bitcoin ETF applications, with a decision due in the first week of September.
Interestingly, it appears that an Ethereum ETF might gain approval before a Bitcoin ETF. According to Bloomberg, the SEC cites Bitcoin’s volatile price swings as a potential risk for individual investors, prompting a cautious approach.
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