SEC’s 2024 Spot Ether ETF Approval: Bitcoin Soars, Ethereum Gains

“On July 23, 2024, the U.S. Securities and Exchange Commission (SEC) granted final approval for nine spot Ether exchange-traded funds (ETFs) to begin trading, following a preliminary reversal in May 2024, per Investopedia. The ETFs, including 21Shares Core Ethereum ETF (CETH), Bitwise Ethereum ETF (ETHW), and Grayscale Ethereum Trust (ETHE), drove Ether (ETH) prices up 2.6% to around $3,500 and Bitcoin (BTC) up 1% to approximately $67,000. The approval, expected to attract 20–25% of the inflows seen by spot Bitcoin ETFs, marked a milestone for Ethereum, the second-largest cryptocurrency by market cap.
The Announcement: SEC Clears Spot Ether ETFsOn July 22, 2024, the SEC approved effective prospectuses for nine spot Ether ETFs, enabling trading to start on July 23, per Investopedia. The ETFs, managed by firms like Fidelity (FETH), Franklin (EZET), and VanEck (ETHV), hold Ether directly, stored in secure digital wallets with custodians using cold storage, similar to spot Bitcoin ETFs approved in January 2024. The approval followed the SEC’s May 2024 shift, prompted by growing institutional interest and the success of Bitcoin ETFs, which saw $4.6 billion in first-month inflows, per prior analyses.
Unlike Bitcoin ETFs, spot Ether ETFs cannot stake their Ether holdings due to unresolved SEC concerns about staking as a potential securities offering, per the article. The SEC’s lawsuit against Consensys for offering staked Ether via MetaMask underscored this, though the Commodity Futures Trading Commission (CFTC) classifies Ether as a commodity, not a security. SEC Commissioner Hester Peirce noted that staking could be reconsidered, per her Coinage media interview, leaving room for future adjustments.
Market Impact: Ethereum and Bitcoin ClimbEther rose 2.6% to around $3,500 on July 23, 2024, per Investopedia, reflecting optimism over ETF-driven demand. Bitcoin gained 1% to approximately $67,000, per CoinMarketCap, buoyed by crypto market momentum. The total crypto market capitalization, near $2.4 trillion, increased by $30 billion, with altcoins like Solana up 1.5%. Analysts like James Seyffart predicted Ether ETFs would attract 20–25% of Bitcoin ETF inflows, potentially $15 billion over 18 months, per Bitwise’s Matt Hougan, who foresaw Ether reaching $5,000. The rally was driven by institutional and retail investor enthusiasm, with ETFs like ETHA and ETHE enhancing liquidity on exchanges like NYSE and Cboe, per Investopedia. Increased trading volume and price discovery, mirroring Bitcoin ETF effects, supported Ether’s price, though the absence of staking limited returns, per the article. The approval followed Bitcoin’s March 2024 peak, reinforcing crypto’s mainstream traction, per prior reports.
Why It Mattered: Ethereum’s Mainstream MilestoneThe SEC’s approval was significant for several reasons. First, it validated Ethereum’s role in traditional finance. Spot Ether ETFs enabled investors to gain exposure via brokerage accounts, bypassing wallet management, per Investopedia. This accessibility, following Bitcoin ETF success, was expected to drive $15 billion in inflows, per Hougan, boosting adoption.
Second, it enhanced market stability. Regulated exchanges enforced anti-fraud rules, and ETF disclosures ensured transparency, addressing manipulation concerns, per the SEC’s framework. The simultaneous approval of nine ETFs promoted competition, mirroring the Bitcoin ETF process, per prior analyses.
Third, it highlighted regulatory nuances. The SEC’s stance on staking as a potential securities offering, contrasted with the CFTC’s commodity classification, created uncertainty, per the article. This followed lawsuits against Binance and Coinbase, per earlier reports, but the approval signaled a shift toward regulated crypto products, aligning with the EU’s MiCA regulation effective December 2024.Long-Term Implications: Crypto’s Regulated Expansion.
The ETF approvals propelled Ether to $3,500 by July 2024, with Bitcoin hitting $99,381.83 by March 2025, per CoinMarketCap. The market cap reached $3 trillion in 2024, driven by $50 billion in Bitcoin and Ether ETF inflows, per Investing.com. Global regulations, like MiCA and India’s 30% crypto tax, reinforced stability, while sustainable mining hit 59% by 2022, per the Bitcoin Mining Council.DeFi and NFT growth on Ethereum diversified its utility, despite staking restrictions, per Investopedia. Trump’s 2024 pro-crypto policies, including a proposed Bitcoin reserve, per X posts like @BTC_Archive, aligned with ETF-driven optimism. Future staking inclusion could boost Ether ETF returns, per Peirce’s comments, though volatility risks persisted, as seen in October 2024’s Middle East tensions, per prior reports.
Conclusion: Spot Ether ETFs Fuel Crypto’s Mainstream Surge. The SEC’s July 23, 2024, approval of nine spot Ether ETFs sparked a 2.6% Ether and 1% Bitcoin price rise, with potential $15 billion in inflows expected. By enabling regulated Ether exposure, the ETFs enhanced liquidity and adoption, though staking restrictions reflected regulatory caution. Amid global frameworks like MiCA and Bitcoin ETF success, the approval solidified Ethereum’s mainstream role, contributing to a $3 trillion market cap by 2024.
Disclaimer: This is not financial advice. Cryptocurrency investments are highly volatile and speculative. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.”