Ethereum blockchain memes coins like Pepe Coin (PEPE) and Floki Inu (FLOKI) surged over the weekend ending Saturday, May 25 following the SEC’s decision on Thursday to approve a rule change in U.S. securities law to allow companies to issue spot Ether ETFs (exchange-traded funds.) As a result, meme coins went absolutely bonkers on crypto exchange markets.
Recently the Securities and Exchange Commission approved a dozen spot Bitcoin ETFs in January, leading to a massive rise in cryptocurrency prices across the board– until an exuberant market for blockchain tokens had to stop and cool down starting around mid-March.
The SEC approved the Ether ETF applications in a new ruling on Thursday but did not approve any specific ETFs nor provide a deadline by which new ETF applications will be finalized and Ether funds will begin trading. But various exchanges with eight requests for Ethereum ETF approval now have the green light to move forward with their applications at the SEC.
Why Ether ETFs Are Bullish For Meme Coins
That’s significant for Ethereum prices as well as the price of ERC20 Layer-2 utility tokens and meme currencies (like the Ether chain’s newest kitty meme– Kai Cat Coin), because the U.S. regulator now invites regulated investors to participate in the Ethereum economy with the safety of regulated financial service providers who bear the risks of custody themselves.
Bitcoin maximalists are already dreading the rivalry for institutional investor money from high net-worth individuals (HNWI) and accredited investors who invest large sums of money (the regulated investing world’s whale investors).
In a recent interview with CNBC, Steven Lubka, the managing director of Swan Bitcoin and head of Swan Private dropped some FUD (fear, uncertainty, and doubt) quotes to scare investors off the Ethereum trail in the wake of the SEC’s approval.
“These numbers are not going to match the bitcoin ETF inflows, and there are some structural differences in the product that just make it less attractive overall,” Lubka said.
Crypto industry analysts and market watchers predicted an approval for Ether ETFs by May, but after the SEC pushed a deadline back earlier in the month, markets weren’t sure until it was finally approved if there would be an approval in May, or if it would take months yet before the SEC would make a decision.
Ethereum Meme Coins And L2s Go Parabolic Again
Now that the regulator has given Ether ETF issuers the go-ahead, Ethereum is more valuable than ever because it has access to its largest ever pool of liquidity to draw from as it continues to increase in size, sophistication, decentralized application development (DApps), and network usage. That’s especially true for Ethereum meme coins.
While Ethereum price (ETH) rose an average of some 20% on crypto exchanges for the 7d period ending Sat. May 25, Ethereum meme coin, Pepe (PEPE) rose 55% on cryptocurrency markets, the most for any cryptocurrency in the top 1,000 cryptos by market cap this past week. Followed by three other Ethereum Layer-2 tokens: Uniswap (UNI), Ondo (ONDO), and Lido DAO (LDO).
From this perspective, it could not be a better time to invest in new Ethereum altcoin projects like Kai Cat Coin (KAI), which is in pre-sale this summer until it reaches the critical mass to list on exchanges and begin trading at market prices. But today it’s still on sale for a fixed, fair, pre-market price that will go up in just a few days.
