Spot Ethereum ETF Approved! What's Next?

The Spot Ethereum ETF has been approved! It's great news for all those already invested in Ethereum and those who are looking to enter the cryptocurrency space. Less than a week ago, the chances of approval were extremely bleak at a mere 25% (According to Bloomberg analysts). These odds rocketed to 75% three days before the ruling, seeing Ethereum rally from $3100 to $3800 (USD), a 20% move purely based on the rumour of the approval.

What now for Ethereum

As anticipated, the price action of ETH was volatile, with moves down to $3500 and back up 11% to $3900 within 30 minutes. Ethereum has now settled back to the price it was pre approval between $3700-3800.

Like Bitcoin's price movement around its ETF approval, the majority of Ethereum’s price increase happened during the hype and anticipation leading up to the approval, resulting in very volatile event. Short term; will it follow BTCs price action post approval and see a correction or will the lack of sell pressure cause the ETF to diverge from BTCs post approval trend and rally from here?

For a longer term outlook, this approval is nothing but bullish for Ethereum and the overall crypto space. The spot Ethereum ETF only means that we will see more inflows into Ethereum itself. As many crypto veterans know, once Ethereum begins to run and outperform Bitcoin, the second phase of the bull market is in full swing. ETH is on the brink of outperforming BTC. Once Ethereum begins to lead the market, then we can turn our attention to phase 3 and 4 for the beginning of altseason.

Could this be one of the last opportunities to enter the market and benefit from the potential upcoming peaks and significant gains? Within the last few months, we have seen Bitcoin and Ethereum receive spot ETFs. Thus, ending the debate of Ethereum potentially being a security. With Ethereum now being seen as a commodity, it helps the case for the rest of the altcoins in being able to classify as commodities too, which is an extremely bullish sign for them.

There is no better time to purchase Bitcoin, Ethereum and other altcoins, this may be the best chance you have to capture the bull market gains.

To Stake or Not to Stake

A benefit of owning Ethereum is the staking aspect of it, where investors can put away their ETH and earn a yield of approximately 4% per annum. However, those who purchase spot ETH through the US approved ETF products, will not be able to participate in staking and earning a yield, nor will the issuers be able to stake the ETH they are holding on behalf of the customer. Meanwhile, Hong Kong is considering allowing their investors to participate in staking spot ETH purchased through their ETF products.

Summary

We now wait for the Spot Ethereum ETF to begin trading and find out what impact it really has. However, it should only be a matter of time before we see major money flow into Ethereum and a full blown Bull-Run to begin...

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