Ethereum ETF is expected to be issued. Another "crypto money printing machine" appears after Bitcoin ETF

After the U.S. stock market closed on Thursday, the U.S. Securities and Exchange Commission (SEC) suddenly produced a document, historically approving the change form of the Ethereum spot ETF trading rules, which means that the new product is only one step away from listing on the U.S. exchange. Next, major issuers will wait for the SEC to approve their S-1 form as the last step in the listing of the Ethereum ETF, but there is no clear deadline for the approval of this document.

Despite this, the market is already very optimistic about the launch of the Ethereum ETF. The only question is whether the Ethereum ETF can replicate the success of the Bitcoin ETF in January.

In the past four months, Bitcoin ETFs have accumulated $57 billion in assets, becoming one of the fastest-growing fund categories in history. However, some analysts are inevitably skeptical about Ethereum ETFs.

Lara Crigger, an analyst at data provider VettaFi, warned that she doubted an Ethereum ETF could attract the same amount of inflows as a Bitcoin product. Its market size is much smaller than Bitcoin, and Ether is far less well-known among the public than Bitcoin.

The token has risen more than 20% this week, its best weekly performance since 2021, on bets that an Ethereum ETF will soon be listed.

Last week, the market also predicted that the SEC would most likely reject the listing of the Ethereum ETF by Thursday’s deadline and continue to delay the launch of the product.

Rich Rosenblum, president of GSR Markets, pointed out that the latest progress of the Ethereum ETF is an important milestone for cryptocurrencies. Its sudden approval is the most incredible reversal in Rosenblum's 12 years of experience in the industry.

An important indicator that troubles the market is the correlation between the Ethereum spot market and the futures market, which was also tested when the Bitcoin ETF was listed. A study by Coinbase showed that the correlation between Ethereum spot and futures was as high as 85% in a one-minute interval between March 2021 and January 2024, which is higher than the data of Bitcoin.

The SEC said it drew on research from Coinbase and others, finding that they provided empirical evidence that price movements between ether spot and CME ether futures were closely aligned.

The good news is that the tortuous approval process has finally given people hope for the launch of the product. Crypto asset trading company QCP Capital predicts that the price of Ethereum may rise by 60% after the ETF product is listed, soaring to around $6,000.

For reference, in less than a month after the Bitcoin ETF was approved, the spot price of Bitcoin rose by more than 50%.