Ether’s Spot ETFs are Likely Days Away Now as Market Braces for Impact

It’s been a rollercoaster of a year for crypto investors, especially those who have major stakes in the likes of Bitcoin, Ether, and other highly-valued cryptocurrencies. Between the SEC’s approval of 11 spot bitcoin ETFs in January to its halving event in April, and the German government still holding close to $2 billion in BTC since last month, there have been fluctuations that have seen Bitcoin both surge and plummet within short periods this year. All that drama is set to spark up once again soon as many analysts now believe Ether’s ETFs could be mere days away from approval. Here’s how it’s affecting market sentiment.

Ether’s Expanding Reach

Cryptocurrencies have begun making major inroads into mainstream acceptance as a variety of different industries now accept it as a payment method. Between the likes of eCommerce chains and even brands like Microsoft accepting cryptocurrencies like Bitcoin, many of the major tokens have surged in popularity. Ether has been no stranger to this phenomenon as it has become one of the driving forces behind the online craze of crypto gambling.

With dedicated platforms that specialize in its use as a payment method, according to crypto writer Geoff Kukard, the best Ethereum casinos usually exist among offshore platforms that accept Ethereum and many other cryptocurrencies. This has resulted in more transparent, secure, and faster sites that continue to draw players from all over the world.

It’s practical applications like these that continue to cement Ether’s place as the second most valuable cryptocurrency in the world. With news of an imminent approval by the SEC for Ether spot ETFs, many analysts believe another Ether bull run is around the corner.

One of the pioneering names that helped transform blockchain technology into how sophisticated, widespread, and useful it’s become today, Ether’s influence now extends well beyond online casinos due to its world-famous decentralized network that conducts transaction verifications via smart contracts. As a result of the versatility it created, Ether is now a prominent name in other industries like these:

Retail

Many retailers now accept Ether, either directly as a payment method for goods and services, or indirectly through voucher systems. Since Ethereum’s network can handle more transactions simultaneously while still maintaining its secure environment and fast processing speeds, it’s being used to provide seamless checkout processes for tech-savvy customers.

Real Estate

Ethereum’s advanced blockchain has also quietly been revolutionizing the real estate market through its smart contracts that can automate the buying and selling process while also securing it. Providing a more efficient and transparent system, Ether may soon be used as a payment method for purchasing real estate too.

Anticipation and Market Sentiment as Ether Spot Launch Nears

With all of these huge strides having taken place before Ether’s potentially upcoming companion ETFs are even accepted, its place as the world’s no. 2 cryptocurrency is all but assured now as the crypto world awaits SEC approval. While demand is expected to be lower than Bitcoin’s was, all the drama that sent BTC prices into a spiral last month means Ether is poised for its own day in the limelight.

If the companion ETFs are approved, more direct purchases of Ether using fiat money are expected, as well as some general upward mobility and an increase in its liquidity and stability. With a good chance of greater adoption of Ether as a result, it seems likely that its market penetration in key areas will continue as the token’s popularity among platforms like crypto-centric online casinos continues to grow.

Market Volatility and Investor Response

As the launch grows more imminent, the market is currently bracing for either some terrific gains or potentially more volatility. The crypto market at large has been hit severely by the German government’s seizure of massive amounts of BTC that it’s begun selling off.

Despite already selling massive amounts that caused much of last month’s depression in the market for Bitcoin, authorities there are still hanging on to more than $1.9 billion in BTC. This has triggered widespread fear of more losses if the sell-offs occur too fast or too frequently.

Political Considerations

The upcoming US Presidential elections will likely also play a huge role in how the crypto market will fare by the end of this year. With Donald Trump doing an about-turn from his previously held position, he’s now stated that he’s going to build a “crypto army” if elected. On the other hand, President Biden has iterated that he’s in favor of stringent regulation of cryptocurrency.

However, even before the election in November, Biden faces a critical moment in August. He’s adamant he will not step aside amid growing calls to do so after his disastrous debate performance and louder concerns than ever over his advanced age. However, it might not be up to him. If the Democrats choose to replace him, it could have a massive effect on the crypto market, since that might throw the race wide open again. Either way, despite many believing Ether’s spot ETFs are imminent and will cause a surge, there are many surrounding factors to keep an eye on too.

 

Image: Pixabay

 

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