Ethereum ETF Optimism Rises After SEC Meeting With Crypto Firms

SEC Meeting Boosts Hope for Ether ETF Amid Market Volatility.

A recent meeting between the U.S. Securities and Exchange Commission (SEC) and Grayscale and Coinbase has made it more likely that the United States will approve a spot Ethereum (ETH) exchange-traded fund (ETF).

SEC Meeting’s Impact on Ethereum ETF Prospects Analyzed by Experts

Nate Geraci, president of The ETF Store and a prominent voice in the ETF industry, expressed optimism following the meeting, stating there are “no grounds for disapproval” of a spot Ether ETF.

SEC met yesterday w/ Grayscale attorneys & Coinbase re: spot ether ETF…
Discussion included analysis of correlation b/w futures & spot markets.https://t.co/sYKrxprjjR pic.twitter.com/vxx1rnV0ZO
— Nate Geraci (@NateGeraci) March 8, 2024

At the meeting, it was revealed that there is a strong positive correlation between the futures and spot markets for the ETH/USDT trading pair. This could help get the ETF approved. Geraci said the SEC had already approved Ether futures ETFs on the Chicago Mercantile Exchange, setting a precedent for the regulator’s stance on the cryptocurrency.

Coinbase, the major cryptocurrency exchange in the U.S., said at the meeting that the approval of Bitcoin spot ETFs applies equal or greater force to Ethereum (ETH). The exchange also discussed how Ethereum’s security features protect users from theft and manipulation, which the SEC cares about.

Even though Geraci is optimistic, most cryptocurrency experts are still unsure if an Ethereum ETF will happen in the U.S. this year.

Ethereum’s price experienced volatility on the day of the SEC meeting. The cryptocurrency briefly breached the $4,000 mark before dropping back to around $3,900 on spot exchanges.