SEC Greenlights Nine Spot Ether ETFs, ETH Price Soars Beyond $3,500

• SEC’s approval of nine spot Ether ETFs drives ETH prices above $3,500, defying correction predictions.
• Ether outperforms Bitcoin with an 8% rise in 90 days, reaching a market cap of over $424 billion.
• Bullish sentiment grows as ETH futures open interest surges, liquidating $4.72M in short positions.

The US Securities and Exchange Commission (SEC) has approved Ether (ETH) Exchange Traded Funds (ETFs) to start trading. This includes nine spot ETH ETFs, such as the $9.3 billion Grayscale Investments trust. Even though some experts predicted a price drop, Ether has proven strong by showing impressive price increases.

Crypto research firm 10X Research anticipated a price correction for ETH, drawing parallels to previous market events such as the Bitcoin futures launch in December 2017, Coinbase’s listing in April 2021, and the spot Bitcoin ETFs launched earlier this year.

Historically, these events led to price corrections soon after listing. However, Ether’s price has defied this trend, gaining traction and surpassing the $3,500 mark. The token’s ongoing surge helped it recover some of the losses from the past 30 days.

The bullish sentiment is supported by data from Coinglass, which shows a 4% increase in total ETH futures open interest (OI) in the last four hours, reaching 4.33 billion ETH (approximately $15.29 billion).

The bullish trend is further evidenced by the liquidation of $5.6 million worth of long and short positions on Ether price action within the last four hours. Notably, 83% of the liquidations were short bets, indicating that traders expecting a price drop were caught off guard by ETH’s upward movement. This suggests strong bullish sentiments in the market.

The process leading to the approval of spot Ether ETFs began on May 20 when the SEC requested exchanges to proceed with their 19b-4 filings. 

This action greatly raised the chances of approval, with the likelihood going up from 25% to 75%. On May 23, the SEC approved the applications to list spot Ether ETFs, allowing trading to begin and boosting investor interest.

The approval of spot ETH ETFs has had an immediate impact on market activity. In the last week of May, there was a notable surge of 500,000 ETH in Open Interest (OI) as bullish investors responded to the positive news. 

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