Opinion: Bitcoin Spot ETF Hits Historic Milestone! Will Ethereum Be Next in Line?

This week’s market observations: Bitcoin ETF clears as scheduled, what does the surge in Ether mean?
The approval of a Bitcoin spot ETF marks the first step towards mainstream adoption of cryptocurrencies.
The ETF approval brings new definitions and value to Bitcoin, representing its formal recognition by traditional finance. This not only affirms Bitcoin but also sends a positive signal to the entire cryptocurrency industry.
Bitcoin is no longer just a digital currency; it has become a legitimate investment product accepted by the mainstream financial market.
This change will undoubtedly attract more traditional investors to pay attention to and invest in Bitcoin, especially those institutional investors who previously stayed away from cryptocurrencies due to regulatory or technological barriers.
However, interestingly, upon the news of the ETF approval, it is Ether and related ecosystem currencies like Arbitrum, Pendle, and ENS that experienced significant surges, with gains of over 20% within 24 hours!
The exchange rate of Ether to Bitcoin also instantly rose from yesterday’s 0.048 to the current 0.056, a nearly 20% increase.
Why is this happening?
We can understand that after the approval of the Bitcoin spot ETF, all expectations regarding ETF clearance will be taken over by Ethereum. Bloomberg analyst James Seyffart predicts that the deadline for the approval of an Ethereum spot ETF will be around May 23, 2024, which means we still have over five months to continue positioning ourselves.
Recap of industry highlights this week
Bitcoin spot ETF clears! A historic milestone achieved.
The U.S. Securities and Exchange Commission (SEC) has finally made a compromise with the market. On Wednesday local time, the SEC approved the first Bitcoin spot ETF, authorizing 11 ETFs to begin trading on Thursday.
However, SEC Chairman Gary Gensler stated that this approval does not mean the regulatory agency recognizes Bitcoin. He described Bitcoin as a “speculative, volatile asset.” Gensler and his predecessor Jay Clayton had previously refused to approve such products.
Nevertheless, this move will attract billions of dollars in new investments. This is because financial advisors and other institutional investors will utilize the traditional tool of ETFs. For retail investors, Bitcoin spot ETFs make investing in Bitcoin easier, cheaper, and safer in certain aspects.
Vitalik: Proposes increasing Ethereum gas limit to 40 million to improve network throughput
According to Cointelegraph, during a Reddit Ask Me Anything session organized by the Ethereum Foundation research team, Ethereum co-founder Vitalik Buterin suggested raising the gas limit to 40 million to enhance network throughput.
Vitalik pointed out that the gas limit has not increased in nearly three years, and it is reasonable to moderately raise it now. According to Etherscan data, the current gas limit is 30 million.
The U.S. SEC to review multiple Ethereum spot ETF applications before the end of May
The U.S. SEC needs to make approval decisions on several Ethereum spot ETF applications before the end of May, including VanEck, Ark 21Shares, and Hashdex Ethereum ETFs, with deadlines on May 23, May 24, and May 30. Bloomberg ETF analyst Eric Balchunas previously stated that after the SEC approves a Bitcoin spot ETF, there is a 70% chance of an Ethereum spot ETF being approved in May.
Opinion articles present diverse viewpoints and do not represent the stance of “WEB3+.”