- Approval of Ethereum ETF may alter altcoins’ legal status, potentially impacting regulatory frameworks.
- Ethereum ETF’s approval could attract substantial institutional investments, fostering altcoin market growth.
- Analysts foresee a ripple effect, leading to the approval of ETFs for various altcoins.
Only days ago, the Securities and Exchange Commission (SEC) of America greenlit the Ethereum Spot ETF, sparking investor enthusiasm. However, amid the optimism, some took advantage of the moment to partake in selling activities. Nonetheless, certain analysts speculate that the Ethereum Spot ETF may surpass the Bitcoin Spot ETF in scale. One of the crypto asset analysts on social media X under the pseudonym Ash Crypto agrees with this statement. He also explained the 3 main reasons, namely:
Security Status of Altcoins
One of the main reasons this agreement is important is its impact on the legal status of altcoins. As is known, the SEC previously stated that almost all altcoins are securities. Altcoins like BNB, XRP, and TRX are facing lawsuits because they held Initial Coin Offerings (ICOs), which the SEC says makes them securities.
With the approval of an ETH ETF, this situation may change. Ethereum, which also held an ICO, is now being treated differently. This could result in other altcoins also not being classified as securities.
Big Money Flow
Ash Crypto stated that this agreement is expected to bring in a large influx of institutional money into the crypto market. If you look at historical movements, in previous cycles Bitcoin received large institutional investments from companies such as MicroStrategy and Tesla.
According to Ash, currently Altcoins have not received much institutional investment. However, with the approval of the ETH ETF, institutions are predicted to start considering investments in other altcoins, which could flow billions of dollars into the altcoin market.
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Further ETF Approvals
With full confidence, the analyst said that the approval of the Ethereum spot ETF is only the beginning. In the future after ETH ETFs start trading, there will be more ETF applications for other altcoins. From here, Ash said, there may also be ETFs covering various altcoins. This could trigger an unprecedented altseason, which would skyrocket the value of various cryptocurrencies.
The future of Ethereum ETF appears promising, poised to outshine its Bitcoin counterpart in the crypto industry. Analysts’ optimistic outlook, backed by compelling reasons, suggests a transformative shift in the landscape. As institutional interest grows and regulatory clarity improves, Ethereum’s potential to lead the market becomes increasingly evident.
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