Milestone of Ethereum Spot ETF

On May 24th at around 5 AM Beijing time, the U.S. Securities and Exchange Commission (SEC) approved key regulatory documents related to a spot Ethereum exchange-traded fund (ETF).

This marks a milestone step towards the approval of the Ethereum spot ETF.

Next, for the Ethereum spot ETF to officially trade on the exchange, the SEC still needs to approve the ETF's filing documents, allowing investors to trade. However, this approval is basically just a matter of time.

I recall that not long ago, I expressed a rather pessimistic view in an article, believing that the approval of the Ethereum spot ETF might have to wait until next year if Trump were to be elected.

This 180-degree turnaround is truly overwhelming.

We know that the current SEC chairman has publicly expressed a negative attitude towards crypto assets over the past year or two. He has repeatedly questioned Ethereum, particularly regarding its token issuance and the conflicts with staking income and the Howey test.

Even when faced with explanations like "Ethereum staking is for maintaining network security rather than purely for commercial profit," he has generally not responded positively.

Therefore, I previously believed that as long as he was in office, the hope for the approval of the Ethereum spot ETF was very slim.

Why has the SEC's attitude towards Ethereum changed so quickly recently?

After thinking it over, I can only wonder if this is mainly due to political pressure?

With the upcoming presidential election, Trump has publicly expressed his support for crypto assets and has even accepted donations in crypto on his website.

This move has garnered considerable goodwill among young people in the U.S.

Faced with this pressure, and perhaps to attract more young people's attention to the Democratic Party, the SEC had no choice but to make a 180-degree turn in its attitude towards the Ethereum spot ETF?

Additionally, the entangled interests and collusion between Wall Street and the SEC may also have played a significant role.

The strong interest of these institutions in the Ethereum spot ETF is already well-known. They have been making various efforts for the approval of this ETF, with BlackRock repeatedly expressing its determination to heavily invest in the crypto ecosystem in public forums.

To alleviate the current chairman's concerns about Ethereum staking, these institutions even promised in the submitted documents not to engage in Ethereum staking operations.

Now, all these efforts have paid off.

I once listed three key factors regarding the potential performance of Ethereum's price in the upcoming bull market:

1. Can innovative application ecosystems emerge within the Ethereum ecosystem?
2. Will the Ethereum spot ETF be approved?
3. Will the Federal Reserve lower interest rates?

The first factor is the internal cause that determines whether Ethereum's price can surge. This is something we cannot predict; we can only continuously track and observe any new signs and trends in the ecosystem.

The second and third factors are external causes that determine whether Ethereum's price can surge. Among these, the second factor is the switch that can activate the external cause, while the third factor is the trigger for the external cause to take effect.

Now the switch for external causes has been completely turned on.

As for the trigger for external causes? It still depends on data performance. If U.S. inflation and employment data continue to improve, a rate cut may occur in the second half of the year, at which point the trigger will be ignited.

In the upcoming bull market, if a rate cut occurs, there is hope for Ethereum's price to reach $10,000. And if the Ethereum ecosystem can also unleash innovative application ecosystems, then the price could potentially create even greater miracles.