SEC Approves ETH Spot ETFs, Driving Surge in ETH and BTC Markets

As the Bitcoin halving event nears, uncertainty persists regarding the SEC's approval of ETH-spot ETF applications. Bitwise's correlation analysis reveals a strong correlation between ETH spot and CME ETH futures markets, similar to the SEC's findings for Bitcoin ETFs. Pressure mounts on the SEC to act before the May approval deadline, with Consensys submitting a comment letter urging approval. ETH ended the week up 5.57%, while BTC fluctuates above key EMAs. Technical analysis suggests a potential rally towards the March 14 ATH for BTC if the $72,000 resistance is breached. However, a drop below the $69,000 support could trigger a move towards the $64,000 support level.

SEC Approves ETH-Spot ETF Applications, Boosting ETH and BTC Markets

As the countdown to the Bitcoin halving continues, the Securities and Exchange Commission (SEC) has finally approved long-awaited applications for ETH-spot exchange-traded funds (ETFs). This development follows a period of uncertainty and speculation among market participants, who have been eagerly anticipating the SEC's decision.

Outlook for the ETH-Spot ETF Market

On Friday, Bitwise, a leading ETF issuer, shared an update regarding its ETH-spot ETF filing. The company expressed frustration over the need for correlation analysis to demonstrate that SEC-approved futures closely track the price of the underlying asset, despite the SEC's approval of ETFs holding those futures.

Bitwise conducted a correlation analysis that showed a strong correlation between the ETH spot market and CME ETH futures market, similar to the findings that led to the SEC's approval of spot bitcoin ETFs. With the May approval window approaching, pressure mounted on the SEC to approve ETH-spot ETFs.

Consensys, an Ether developer firm, also sent a comment letter to the SEC, urging its approval of these applications. Notably, Consensys has indirect ties to former SEC Chair Jay Clayton through Electric Capital, a venture capital firm invested in Consensys.

ETH and BTC Price Action

Following the SEC's approval, ETH surged 3.94% on Sunday, ending the week up 5.57% to $3,647. Over the month of March, ETH climbed 9.13%, trailing behind Bitcoin's 14.01% gain. Year-to-date, ETH has experienced a remarkable 58% increase.

In the Bitcoin market, prices hovered comfortably above the 50-day and 200-day exponential moving averages (EMAs), signaling bullish momentum. A move back to the $72,000 level could provide an opportunity for a run at the March 14 all-time high (ATH) of $73,808. However, if support at $69,000 fails, the $64,000 support level could come into play.

With a 14-day Relative Strength Index (RSI) reading of 58.57, BTC has room to extend its rally before entering overbought territory. The SEC's approval of ETH-spot ETFs is expected to further boost sentiment in both the ETH and BTC markets.

Conclusion

The SEC's approval of ETH-spot ETF applications has injected a dose of optimism into the cryptocurrency industry. With the long-awaited approval finally in place, market participants anticipate increased institutional participation and liquidity in the ETH market. The bullish technical outlook for both ETH and BTC suggests that the recent rally may continue in the coming days and weeks. Investors should monitor market conditions closely and consult with financial professionals before making any investment decisions.