- Following the approval of Spot Ethereum ETFs, Coinbase Chief Legal Officer Paul Grewal says that Ethereum is effectively deemed a commodity.
- After a long wait, 19b-4 forms for Spot Ethereum ETFs have been approved, marking the first steps towards official approval of all ETH ETFs.
- Ethereum is expected to boom in price as Bitcoin did following its ETF approval, and at the time of the article, ETH was trading over $3,800, up 4% in 24 hours and over 25% in the past week.
Ethereum has taken a major step towards mainstream adoption with the approval of Spot Ethereum ETFs. According to Coinbase Chief Legal Officer Paul Grewal, Ethereum is now effectively deemed a commodity like Bitcoin. This classification and the upcoming launch of ETFs represent a new era for the second largest cryptocurrency.
Ethereum ETF Forms Approved
The SEC has approved the 19b-4 forms required for Ethereum ETFs, marking the first formal step in the approval process. While the S-1 forms still need to be cleared, this news has been met with excitement from major players like Coinbase.
Once the S-1 forms are processed over the coming weeks and months, the ETFs will be allowed to launch. This will expose Ethereum to mainstream investment vehicles and potentially drive up demand and price.
Price and Market Reaction
In anticipation of the ETF launches, Ethereum prices have already begun to climb. At the time of writing, ETH is trading above $3,800, up 4% in 24 hours and over 25% for the week.
A similar effect was seen when the first Bitcoin ETFs were approved earlier in 2024. As more mainstream capital enters the Ethereum ecosystem through these new products, the price is likely to continue rising.
Conclusion
With commodity status and ETF approval, Ethereum is transitioning into a new stage of maturity and legitimacy. This will enable broader access and more use cases for ETH and decentralized applications built on the network. The long-term implications of these developments are overwhelmingly positive for the Ethereum community and investors.
