Bitcoin wavers, ether soars after SEC greenlights launch of U.S. bitcoin ETFs

Bitcoin held steady after the U.S. Securities and Exchange Commission approved the trading of spot bitcoin ETFs. The cryptocurrency’s price was flat at $46,671.22, while ether surged 15.5% to $2,606.00, reaching its highest level since May 2022.

The approval marks a significant milestone for the crypto industry, which has been pursuing a bitcoin ETF for over a decade. Bitcoin’s price has increased 80% since Grayscale’s legal victory against the SEC in August.

While bitcoin initially dipped after the news, the anticipation is that bitcoin ETFs will drive demand and increase the price of bitcoin. Mining stocks, such as Iris Energy and CleanSpark, benefited from the news, with a boost in after-hours trading.

Ether’s rally also had a positive effect on other coins in the Ethereum ecosystem, with Polygon, Chainlink, and Uniswap experiencing gains. Traders are now looking ahead to the possibility of an ETH ETF, as ether seems relatively cheap compared to other tokens.

The SEC is expected to make decisions on spot ETH ETF applications starting in May. Various firms, including BlackRock, Invesco, Ark, VanEck, and Grayscale, are awaiting approval for their ETH ETF applications.

Ether lagged behind bitcoin in 2023, with a rise of only 90% compared to bitcoin’s 157%.