ETH ETF Approval Likely to Boost Altcoins, LBank is going to help users capitalize on this potential surge

This Year’s Second Milestone: Ethereum Spot ETF Approved

The approval of the Ethereum spot ETF is set to have significant positive effects on altcoins. LBank is dedicated to listing meme and other altcoins, ensuring users can capitalize on the altcoin season following the ETH ETF approval.

This week, the Ethereum spot ETF went from having a mere 7% chance of approval to a staggering 75% overnight, with ETH prices repeatedly breaking the $3,800 mark. Surprisingly, just four months after the approval of Bitcoin ETFs, the Ethereum ETF has also been greenlit.

On May 24, the U.S. Securities and Exchange Commission (SEC) approved several Ethereum spot ETF 19b-4 forms, including those from BlackRock, Fidelity, and Grayscale. However, even though the forms have been approved, ETF issuers need to activate the S-1 registration statement before trading can begin. The SEC has just started discussing the S-1 forms with issuers. The exact duration of this process is unclear, but some analysts predict it could take several weeks.

Additionally, six other Ethereum spot ETFs are awaiting approval. The ARK 21Shares Ethereum ETF decision is due tomorrow night, followed by the Hashdex Nasdaq Ethereum ETF on May 30, the Grayscale Ethereum Trust on June 18, the Invesco Galaxy Ethereum ETF on July 5, the Fidelity Ethereum Fund on August 3, and the Ishares Ethereum Trust on August 7.

It’s important to note that the current approval is limited to the 19b-4 documents. The final launch of the ETFs requires the SEC to approve both the 19b-4 and S-1 documents. Therefore, seeing the S-1 approval and the actual launch of the Ethereum ETFs may take several weeks to months.

Consensys CEO Joseph Lubin mentioned in an interview that while several 19b-4 applications from companies like BlackRock are likely to gain SEC approval, the approval of the S-1 document is crucial for these new ETFs to list, which could delay the process. He added, “It remains to be seen if there will be delays. I guess this is now a major political issue.”

After witnessing the bullish market induced by Bitcoin ETFs, the approval of the first Ethereum spot ETF, VanEck, has undoubtedly stimulated the market. The Ethereum price experienced significant volatility, plunging to $3,523 before briefly breaking $3,900, with a fluctuation of over 10%. As of writing, the price stands at $3,811.

Impact of Ethereum Spot ETF Approval

The approval of the Ethereum spot ETF is a milestone event, bringing significant implications for the crypto industry and laying a positive foundation for its future development. For altcoins, this could be a lifeline.

The most immediate impact of the ETF approval will be on price. Since the Bitcoin spot ETF was approved, Bitcoin’s price has increased by 75%. The approval of the Ethereum spot ETF is expected to have a similar effect on ETH’s price. However, this news did not immediately shake the altcoin sector, which saw slight declines.

Geoff Kendrick, Head of FX Research and Digital Assets at Standard Chartered, stated, “Following approval, we expect the spot Ethereum ETF to drive an inflow of 2.39 to 9.15 million ETH within the first 12 months.” He added, “In dollar terms, this equates to approximately $15 billion to $45 billion.”

Kendrick also noted, “Given our forecast of Bitcoin reaching $150,000 by the end of 2024, this implies Ethereum’s price will hit $8,000.”

Beyond the direct impact on ETH’s price, the Ethereum spot ETF will positively affect the altcoin market. Since the majority of altcoins on decentralized exchanges (DEX) are traded against ETH, an increase in ETH’s price will result in a passive rise in altcoin prices.

Additionally, some market opinions suggest that the approval of the Ethereum spot ETF sets a strong precedent for future cryptocurrency ETF applications.

With the Ethereum spot ETF approval likely to usher in an altcoin season, LBank’s focus on listing meme and other altcoins positions it well to help users capitalize on this potential surge.