As of Dec 27, the price of bitcoin (BTC) has gained 155.2% year to date after collapsing in November 2022 following the fall of FTX, the exchange founded by Sam Bankman-Fried. Ethereum (ETH) is up 86.1% in the same period. The crypto recovery in 2023 has been led by the possibility that the Securities and Exchange Commission (“SEC”) could finally start approving crypto spot ETF filings, and pave the path for the benchmark crypto to go mainstream.

There had been roadblocks, however, as the SEC was seemingly stalling approval of these applications because of a lack of reliability in the sector. The pressure kept on mounting on the regulatory body as big-time players from the traditional marketplace entered the fray. In fact, a federal judge earlier this year sided with investment firm Grayscale Investments in ruling that the SEC wrongly denied its application.

In November, Binance, a leading crypto exchange, acceded to the demands of the regulators and allowed closer scrutiny of its business on the heels of CEO Changpeng Zhao stepping down and pleading guilty to U.S. money laundering charges. As ominous as it may sound, this went a long way in convincing regulators that major players in the industry can be monitored and remain answerable to regulation.

Therefore, it did not come as a surprise that on Nov 30, in what can be dubbed a watershed moment for the crypto market, the SEC called for public opinion on a proposed rule change that will allow Fidelity Investments, an asset management giant, to list and trade shares of the Fidelity Ethereum Fund.

This has opened up opportunities for various traditional finance giants who have applied for a spot in crypto ETFs. Investor optimism is currently on a very high level as it is increasingly becoming clear that the regulatory body might stop stalling these applications and pave the way for crypto to go mainstream. In fact, market participants are anticipating the approvals to start coming through as early as January 2024.