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SEC Approves Ethereum ETF Options Trading – All Details Here
In a significant move, the United States Securities and Exchange Commission (SEC) has approved options trading for spot Ethereum (ETH) exchange-traded funds (ETFs). The regulatory greenlight gives investors more flexibility in managing their ETH investments.
The approved ETFs include those from BlackRock, Fidelity, and Bitwise. This development could potentially attract more investment into the crypto market.
Nate Geraci of ETF Store expressed his thoughts on the situation, stating that the SEC’s approval is expected to lead to a flurry of new ETF launches. He highlighted that this will likely result in various strategies such as covered call and buffer ETH ETFs.
In contrast, Bloomberg analyst James Seyffart argued that the decision was ‘100% expected.’ He justified his stance by saying it was the deadline for the SEC’s decision, implying that the news had already been priced into Ethereum’s value.
Despite this outcome, Seyffart did hint at the possibility of staking approval being granted as early as May or August. The potential for staking approval has sparked debate about its impact on ETH demand and valuation.
It is noteworthy that some experts attributed the underperformance of spot ETH ETFs to the lack of staking capabilities. These same experts pointed out that the absence of this feature led to a considerable performance gap with Bitcoin (BTC) ETFs, which recorded 17 times more inflows.
ETH surged by around 10% within a short span following President Donald Trump’s announcement of a 90-day tariff pause on April 9th. This price increase was not directly attributed to the SEC approval.
However, there was an observable spike in market interest and sentiment as reflected in April’s Social Volume, which hit a new high.
ETH chart analysis suggests that it is poised to potentially stall at its short-term resistance level around $1600 for now. However, if it can break through this barrier and gain momentum, there may be room for further upside.
The long-term recovery of ETH could be contingent on the realization of positive macroeconomic shifts and a favorable ETF staking approval.
Source: https://ambcrypto.com/sec-approves-ethereum-etf-options-trading-all-details-here/
