S&P: SEC to Approve Spot Ethereum ETF Applications in May

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According to S&P, the SEC will likely approve applications for the issuance of exchange-traded crypto ETFs focused on ether (ETH) in May 2024.

This could lead to a shift in capital towards ETH, increasing its dominance in the cryptocurrency market. As open interest in Ether futures surges to over $10 billion, major financial firms such as BlackRock and Fidelity are applying to issue crypto spot funds investing in the altcoin.

The potential ETFs are expected to hold Ether on custodial services, like Coinbase, rather than DeFi protocols for staking.

Such custodial platforms are already being used for Bitcoin ETFs, which were introduced in the US market in early January 2024, showcasing the growing institutional interest in this type of instrument.

The S&P report suggests that the approval of ether-focused ETFs could trigger a redistribution of capital, further increasing the dominance of ETH in the crypto industry.