- The SEC may approve the several Ethereum ETF applications it has received.
- ETH’s price jumped as the news broke.
According to a Bloomberg report, Ethereum [ETH] futures Exchange-Traded Fund (ETF) may be approved by the U.S. SEC sooner than expected. The report, which came out on 17 August, noted that the regulatory is unlikely to block the product that has seen a lot of applications by numerous firms.
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Recall that BlackRock’s Bitcoin [BTC] futures ETF has already paved. So, the Ethereum community has also been eagerly awaiting a similar development. At the time of writing, firms including BitWise, Volatility Shares, Roundhill, and Grayscale had already filed applications for the ETF.
Interestingly, the development broke when the entire crypto market was undergoing a massive correction. During that time, ETH’s price had fallen to $1,600. But as soon as the public got wind of the report, a renewed sense of optimism entered the market. This, in turn, acted as a catalyst for the cryptocurrency’s recovery.
This propelled ETH to gain as much as 10% within a short period. Although the report has not been confirmed by the SEC, many believe that if approved, it could bring some stability to the crypto market.
However, the Ethereum community may need to be careful about being overly excited about the development. This is because the SEC has been slow to authorize derivative products, as the regulator continues to express skepticism over the potential manipulation of cryptocurrencies like ETH.
But what else is happening with Ethereum?
According to Santiment, Ethereum’s network growth had decreased to 26,600. Network growth measures the number of new addresses joining a network. When the metric increases, it means that there is a good level of traction on the network.
But a decrease in the network growth suggests that new addresses joining the network have refrained from making transactions.
If approved, there could be a positive change in network growth. This is because more investors might trust ETH, and institutional liquidity would come into the ecosystem.
Furthermore, the Market Value to Realized Value (MVRV) ratio showed that ETH could be undervalued at its current price. The MVRV ratio represents the ratio between the current price of an asset and the realized prices.
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When it rises into the positive region, it means that market participants have made a lot of unrealized gains. But when the metric falls into the red area, it suggests that the average holder is coping with losses.
At press time, the 30-day MVRV ratio was -8.01%. This indicates losses for ETH holders. At the same time, it offers a buying opportunity for those looking to hold for a long period.