Week in Review: Bitcoin ETF Clears, What Does Ether’s Surge Mean?
The approval of a Bitcoin ETF marks the first step towards mainstream adoption for cryptocurrencies.
The ETF’s approval brings a new definition and value to Bitcoin, representing its formal recognition by traditional finance. This not only affirms Bitcoin but also sends a positive signal to the entire cryptocurrency industry.
Bitcoin is no longer just a digital currency; it has become a legitimate investment product accepted by the mainstream financial market.
This change is undoubtedly going to attract more traditional investors to pay attention to and invest in Bitcoin, especially large institutional investors who were previously wary of cryptocurrencies due to regulatory or technical barriers.
However, interestingly, upon the news of the ETF approval, it was Ethereum and related ecosystem tokens such as Arbitrum, Pendle, and ENS that experienced significant surges of over 20% within 24 hours!
The exchange rate of Ether to Bitcoin also instantly rose from 0.048 yesterday to 0.056 now, a nearly 20% increase.
But why is this happening?
We can understand that after the approval of the Bitcoin spot ETF, all expectations related to ETF clearance will be taken over by Ethereum. Bloomberg analyst James Seyffart predicts that the deadline for the approval of an Ethereum spot ETF will likely be around May 23, 2024, which means we still have over five months to continue positioning ourselves.
Week’s Key Industry News Recap
Bitcoin Spot ETF Clears! A Historic Milestone
The U.S. Securities and Exchange Commission (SEC) has finally compromised with the market. On Wednesday local time, the SEC approved the first Bitcoin spot ETF, authorizing 11 ETFs to begin trading on Thursday.
However, SEC Chairman Gary Gensler stated that this approval does not mean that the regulatory agency endorses Bitcoin. He described Bitcoin as a “speculative, volatile asset.” Gensler and his predecessor, Jay Clayton, had previously refused to approve such products.
Nevertheless, this move will attract billions of dollars in new investments. Financial advisors and other institutional investors will use the familiar traditional tool of ETFs. For retail investors, Bitcoin spot ETFs make investing in Bitcoin easier, cheaper, and safer in some aspects.
Vitalik: Suggests Increasing Ethereum Gas Limit to 40 Million for Network Throughput Improvement
According to Cointelegraph, during a Reddit Ask Me Anything event organized by the Ethereum Foundation research team, Ethereum co-founder Vitalik Buterin suggested increasing the Gas limit to 40 million to improve network throughput.
Vitalik pointed out that the Gas limit has not increased in nearly three years, and it is reasonable to moderately raise the Gas limit now. According to Etherscan data, the current Gas limit is 30 million.
U.S. SEC to Review Multiple Ethereum Spot ETF Applications by the End of May
The U.S. SEC needs to make approval decisions on multiple Ethereum spot ETF applications by the end of May, including VanEck, Ark 21Shares, and Hashdex Ethereum ETF, with final deadlines on May 23, May 24, and May 30 respectively. Bloomberg ETF analyst Eric Balchunas previously stated that after the SEC approves the Bitcoin spot ETF, there is a 70% chance that an Ether spot ETF will be approved in May.
Opinion articles present diverse opinions and do not represent the stance of “WEB3+”.