IVZ - Ethereum Posts Best Week In A Year As ETFs Approved

2024-05-27 10:23:33 ET

%Ethereum (CRYPTO: ) is coming off its best weekly performance in more than a year after the U.S. Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETFs) that track the price movements of the second largest cryptocurrency by market capitalization.

The price of Ethereum is up 3% on May 27 and trading just under $4,000 U.S. per digital token, building on a 20% gain the previous week, which was its best performance since March 2023.

Ethereum’s rapid rise brings the %Cryptocurrency closer to its all-time high of $4,878.26 U.S. reached in November 2021 during the previous bull market.

The SEC’s approval of spot Ethereum ETFs comes as a bit of a surprise as many analysts and investors doubted that the regulator would approve the new funds.

Many crypto analysts had expected the SEC to, at best, delay its ruling on Ethereum ETFs, which enable investors to track price movements without having to hold the cryptocurrency in a digital wallet.

Several asset management firms, including VanEck, Ark Invest, %BlackRock (NYSE: ), and %Invesco (NYSE: ) have filed for approval to launch spot Ethereum ETFs.

The exact timing of the launch of the Ethereum ETFs is not yet known. However, some analysts are now predicting that Ethereum’s price will test new highs in coming months.

So far in 2024, Ethereum’s price has increased 69% to trade at $3,928.59 U.S.