The recent approval of Bitcoin exchange-traded funds (ETFs) has triggered a positive impact on the cryptocurrency market, opening the door for the potential recognition and approval of similar instruments for other assets.
This Wednesday marked an important milestone with the green light given to Bitcoin ETFs, generating favorable expectations that were reflected in the rebound of several cryptocurrencies.
One of the most notable cryptos in this context is Solana, which has seen a staggering 930.53% rally since the end of 2022.
Solana’s market value rose to $45.28 billion this Wednesday, marking a significant increase of 8% in the last 24 hours, according to official data from CoinMarketCap.
This bullish movement occurred hours after the approval of Bitcoin ETFs, demonstrating the strong correlation between the regulatory decision and market performance.
Analyst Simon Peters of eToro highlights that the approval of Bitcoin ETFs has not only benefited this particular cryptocurrency, but also opens the door for the possible approval of similar instruments for other cryptocurrencies.
Among the candidates is Ethereum, which has seen a 111.25% increase since the end of 2022.
The US Securities and Exchange Commission (SEC) has seven pending applications for Ethereum spot ETFs, including one filed by BlackRock.
The decision on 3 of these cryptocurrency ETFs is expected in May, according to SEC deadlines
Cardano, Ripple (XRP), Dogecoin, Polkadot, Avalanche, Polygon, Ethereum, Bitcoin Cash, and Shiba Inu also joined the rally after the approval of Bitcoin ETFs.
Ethereum jumped 10.22%, XRP rose 8.80%, and Dogecoin gained 8.23% in the hours following the announcement.
Polkadot recorded an increase of 17.42%, Cardano 16.14%, Avalanche 13.11%, Polygon 11.64%, Ethereum 10.22%, and Bitcoin Cash 8.80%.
These movements suggest a widespread and positive reaction in the cryptocurrency market, supporting the idea that the approval of Bitcoin ETFs has created positive momentum for other cryptocurrencies.
The phenomenal market rise and widespread support of other cryptocurrencies demonstrate how key regulatory events can influence market perception and price movements.
This development not only validates Bitcoin as a legitimate asset, but could also pave the way for greater acceptance and recognition of other cryptocurrencies in the traditional financial sphere.
As we head into 2024, the crypto community is eagerly awaiting the SEC’s decisions on Ethereum ETFs and other cryptocurrencies, which could mark another important milestone in the evolution of the cryptocurrency market.