July 2024 – The U.S. Securities and Exchange Commission (SEC) made history by approving the first Ethereum spot ETFs, causing ETH prices to skyrocket 40% within a month. This landmark decision marks a pivotal moment for crypto institutionalization, following Bitcoin ETF successes earlier in 2024.

Key Market Impacts

• ETH price jumped from $3,200 to $4,500 post-approval

• $4.7B inflows recorded in first-week ETF trading

• Ethereum dominance rose to 22% of total crypto market cap

• GBTC conversion boosted ETH staking yields by 18%

Why This Approval Matters

1. Institutional Gateway: ETFs enable pension funds and RIAs to access ETH without direct custody risks.

2. Regulatory Clarity: Confirms Ethereum’s non-security status under U.S. law.

3. Staking Integration: Major issuers like BlackRock include staking rewards in products.

Approved Ethereum ETFs (AUM as of July 31)

Market Reactions

• Coinbase shares rose 22% on custody demand

• Lido Finance TVL hit $45B as staking surged

• Competitor tokens like SOL (+28%) and ADA (+19%) rallied in sympathy

What’s Next for ETH?

Analysts predict:

• $6,000 ETH by EOY 2024 as ETF flows continue

• Futures open interest could double by Q3

• Layer 2 solutions like Arbitrum to benefit from scaling demand