The cryptocurrency market has seen a bullish trend since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs earlier this year. In a landmark decision on May 24 (Taiwan time), the SEC greenlit multiple Ethereum spot ETFs by approving 19b-4 forms for proposals from financial giants like BlackRock, Fidelity, and Grayscale. While issuers still need S-1 registration statements to take effect before trading begins, Ethereum's price has surged nearly 24% over the past five days, with a year-to-date increase of approximately 61.25%.
Market uncertainty surrounded Ethereum’s approval due to its fundamental differences from Bitcoin. Bitcoin was designed as a decentralized digital currency, whereas Ethereum is a programmable blockchain platform supporting decentralized applications (dApps) and smart contracts.
Key Differences Between Bitcoin and Ethereum
- Consensus Mechanism: Bitcoin uses energy-intensive Proof-of-Work (PoW), while Ethereum transitioned to energy-efficient Proof-of-Stake (PoS).
- Supply Dynamics: Bitcoin has a fixed supply cap (21 million), while Ethereum’s issuance depends on network activity.
- Regulatory Concerns: Ethereum’s smart contract functionality raised securities classification debates, complicating SEC approval.
Centralization Risks in Ethereum
Swiss blockchain analytics firm Glassnode reports that 55% of Ethereum’s supply is held by just 1,041 wallets, raising concerns about market manipulation and governance centralization. The SEC’s cautious approach reflected these risks.
Global Crypto Exchanges Celebrate Milestone
Leading exchanges expressed optimism:
- Coinbase highlighted Ethereum’s expanding technical applications.
- Binance CEO Richard Teng called the approval a "watershed moment," noting pre-existing Ethereum ETFs in seven regional markets.
👉 Explore Ethereum’s growth potential with Binance
Bitcoin ETF Precedent
U.S. Bitcoin spot ETFs attracted $13.3 billion inflows within five months of approval—a trajectory analysts predict Ethereum could follow.
Hong Kong Joins the Crypto ETF Race
Hong Kong approved Bitcoin and Ethereum spot ETFs in April, aiming to become a crypto finance hub. However, its Ethereum ETFs saw modest inflows (62.8 ETH), dwarfed by U.S./European trading volumes.
Taiwan’s Staged Approach to Crypto ETFs
Taiwan’s Financial Supervisory Commission (FSC) is considering allowing professional investors (institutions or individuals with >NT$30 million assets) to purchase overseas Bitcoin ETFs via securities firms’ referral services. Key conditions:
- Limited to institutional investors initially.
- Mandatory risk disclosure agreements before trading.
- Final decision expected by late 2024.
FAQ: Ethereum Spot ETFs
1. Who can invest in crypto ETFs in Taiwan?
Initially, only institutional investors and high-net-worth individuals (NT$30M+ assets).
2. Why did Ethereum’s price surge pre-approval?
Anticipation of ETF inflows and broader market optimism.
3. How does PoS improve Ethereum’s sustainability?
It eliminates energy-intensive mining, reducing Ethereum’s carbon footprint by ~99%.
4. What’s the risk of Ethereum’s centralized holdings?
Large holders could influence network upgrades or manipulate prices.
5. Will Taiwan approve retail crypto ETFs soon?
Unlikely before 2025; the FSC prioritizes institutional investor safeguards.
👉 Stay updated on crypto ETF regulations