Spot Ethereum ETFs get final approval from the U.S. SEC: Is a second bull run on the horizon?

In a significant move, the U.S. Securities and Exchange Commission (SEC) has greenlit the launch of spot Ethereum exchange-traded funds (ETFs), set to begin trading as early as Tuesday, offering investors direct exposure to the price fluctuations of Ethereum, the globe's second-largest digital currency by market cap.

This development is set to potentially integrate Ethereum into traditional investment vehicles such as 401(k)s, IRAs, and pension funds, significantly enhancing its mainstream credibility and adoption.

The regulatory nod was given to registration applications from prominent industry players, including 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy.

Ethereum's trajectory is under the microscope as past insights reveal that the approval of spot Bitcoin ETFs previously ignited a remarkable 56.9% upswing in Bitcoin prices, propelled by a mix of factors including expectations of interest rate cuts and the Bitcoin halving event.

The green light for Ethereum ETFs is expected to usher in a new era of capital flow into the Ethereum market. Wall Street's perspectives vary on the potential impact of these ETFs on the price movements of the globe's second-largest cryptocurrency.

Steno Research, in a bold forecast made in late June, projected that Ethereum could soar to $6,500 this year, bolstered by substantial inflows. The anticipated inflow into Ethereum for the coming year is poised to rival the impressive volume that Bitcoin spot ETFs attracted within a mere seven months. With the current price of Ethereum hovering around $3,450, the launch of Ethereum ETFs could potentially fuel a surge of nearly 90%, setting a bullish precedent for the digital asset.

However, the consensus on whether Ethereum will mimic Bitcoin's ETF success is split. JPMorgan casts a conservative outlook, suggesting that Ether ETFs will likely capture just a slice of the inflows Bitcoin enjoyed in late May. Echoing this sentiment, Citi projected earlier this month that Ethereum ETF inflows could represent a modest 30%-35% of Bitcoin's achievements, translating to an estimated $4.7 billion to $5.4 billion over the coming six months.

Both financial giants emphasised Bitcoin's first-mover advantageand the current shortcomings of the Ether ETF, which currently only allows for unstaked ether holdings. But some institutional sources believe that Ether ETFs will eventually be allowed to support staking.

On Sunday, Joe Biden announced his withdrawal from the presidential race and endorsed Vice President Harris as the Democratic nominee. Despite the increased uncertainty surrounding the upcoming campaign, Trump maintains a lead in support ratings. The political landscape is particularly noteworthy for crypto enthusiasts, as Trump and his party have shown a favorable stance towards digital assets.

The Bitcoin Conference will be coming to Nashville, Tennessee from July 25th - 27th. The event is set to feature a keynote speech by Donald Trump. There's increasing speculation that Trump might use this platform to unveil intentions to recognize Bitcoin as a strategic reserve asset, a move that could have significant ramifications for the cryptocurrency's status and the broader market.

Cryptocurrency is a mainstream trading category in Australia, and the currently available ETFs for trading include, but are not limited to, the following: