The journey of Ethereum has been nothing short of remarkable since its launch in 2015. With nearly 128,000% growth, Ethereum has established itself as a powerhouse in the world of cryptocurrencies, thanks to its innovative smart contracts and its dominance in decentralized finance (DeFi). However, the recent decision by the Securities and Exchange Commission (SEC) to pave the way for approval of a spot Ethereum exchange-traded fund (ETF) could mark the beginning of a new chapter for this digital asset.

The SEC’s decision to approve all eight 19b-4 applications for Ethereum ETFs came as a surprise to many analysts. Just weeks ago, the chances of approval seemed slim, with estimates as low as 25%. However, on May 22, rumors began to circulate that the SEC was reconsidering its stance, leading to the official announcement of approval the following day, and while this is not the final step in the process, it sets the stage for Ethereum ETFs to become a reality in the near future.

Let’s remember that the main purpose of an ETF lies in its ability to democratize access for investors. Thus, with Ethereum ETFs, there will not be the need to navigate crypto exchanges or manage digital wallets as Ethereum will be more accessible to a broader audience. All kinds of investors will be able to simply buying shares, similar to investing in a stock.

Now, in terms of the potential impacts that Ethereum ETFs may incur, we can look at Bitcoin’s experience:

When Bitcoin became the first cryptocurrency to get a spot ETF earlier this year, it sparked a surge in demand that led to a supply shock and sent Bitcoin’s price to an all-time high, and while Ethereum may not experience the same level of demand as Bitcoin, its smaller market cap means that even a fraction of the capital inflow could have a substantial effect on its price.

For instance, if Ethereum ETFs were to be half as successful as Bitcoin ETFs, it could still add billions to Ethereum’s market cap and potentially send its price to new all-time highs, and while these projections are speculative, taking into account that Bitcoin’s value was remarkably boosted after the approval of its ETFs, it is very likely that Ethereum’s value will rise too if ETFs are fully approved.

Furthermore, another possible impactful outcome of Ethereum ETF approval will be the participation of institutional investors. Historically, institutional investors have been hesitant to enter the crypto market due to regulatory uncertainty and custodial concerns. However, with the introduction of ETFs, institutions now have a regulated and accessible avenue to invest in Ethereum, and this influx of institutional capital could boost Ethereum’s price even further.

Thus, as we await for the full ETF approval and the launch of Ethereum ETFs, one thing is certain: Ethereum is about to enter a new phase of growth and adoption. The impact of institutional involvement will unfold gradually, but the growing interest from deep-pocketed investors is a promising sign for Ethereum’s future.

Moreover, although its current price is below all-time high, Ethereum’s fundamentals remain strong, and for those considering investing in the crypto, now might be a good time to do it because if Etherum ETFs become a reality just like Bitcoin ETFs did, Ethereum will solidify its position as one of the most valuable cryptocurrencies in the world.