New SEC Move Could Reverse The ETH Slump

It has been a year since the SEC has approved spot ETH exchange-traded funds or ETFs.  However, the organization is still pondering whether to allow options trading on these platforms. A recent filing revealed that the agency is seeking public opinion on the proposed rule change that wil facilitate spot ETF trading on Grayscale, iShares, and Bitwise.  

Therefore, it is safe to say that the SEC wants to keep investors and traders in the loop. This could be great for ETH as investors would have the free rein to decide the outcome. This can positively affect the pricing of ETH. However, it is merely a speculation at this point. Therefore, only time can tell us what the outcome will be.  

Options for BTC-linked ETFs were approved shortly after the SEC approved spot ETF trading in January 2024. In the filing, the  CBOE exchange commented, “The Ethereum Funds are similar to the Bitcoin Funds, except that those funds hold Bitcoin (another cryptocurrency) rather than Ethereum, which are already eligible for options trading on the Exchange.”  

Since its launch in July of 2024, ETH-linked spot ETFs have managed to garner around $10 billion in inflows. This shows that the appeal is moving towards the right lane, and it will be interesting to see where the decision is headed.  

The Change 

Till now, ETH is easily one of the worst-performing cryptos in the market. The coin is currently standing at a loss of 18%. This could be because of two prime factors. First, macroeconomic developments like the trade war have put people on edge. As a result, the fear/greed index regarding investing is low. Therefore, ETH faces one of the worst slumps of the five other currencies. Secondly, competitors like SOL, SUI, Cardano & TRON offer better alternatives when it comes to scaling. Therefore, many developers are choosing the aforementioned names over ETH. 

However, the recent decision by the SEC to rope in public opinion regarding the coin could be a positive catalyst. Public sentiment towards the coin could grow and turn its slump into a positive uptrend. Therefore, the only thing to do is to wait and watch.