Ether experiences a decline after the SEC allows for ether ETFs, but still manages to have a successful week.

On Friday, the Securities and Exchange Commission approved a rule change, which will enable exchange traded funds to purchase and hold cryptocurrency, resulting in a slip.

According to Coin Metrics, the price of ether decreased by 2% to approximately $3,700.00. Despite this, it has maintained its 20% weekly gain and is currently on track for its best week in over a year.

"Rachel Lin, CEO and co-founder of SynFutures, stated that today's market behavior appears to be a pause as investors evaluate recent gains and consider the impact of external economic factors, including the recent rates sell-off. This pause may also reflect a cautious approach due to the ongoing uncertainty about the timeline for regulatory approvals, such as S-1 filings."

This week, the price of ether surged more than 20% in two days due to a sudden change in expectations about SEC approval of ether ETF applications. Initially, it was believed that the agency would not approve the new funds due to a lack of engagement on the filings. However, in the weeks leading up to bitcoin ETF approvals, the SEC was reportedly actively engaging with fund issuers.

Coincover's head of partnerships, Alex Saleh, stated that despite the rapid pricing in of Thursday evening's approval, there is still uncertainty regarding the release date of the new products and which companies will be involved.

"The uncertainty caused by major industry players' calls that ether is a commodity is making it difficult to predict any changes in demand, which in turn is leading to further price discovery."

The premarket trading volume of ether ETFs was more than 1%, while nearly 1% for both companies that offer cryptocurrency trading. However, Coinbase could potentially benefit more from the introduction of ether ETFs due to its additional crypto services, such as custody and staking, as well as a broader range of tradeable assets. Additionally, Coinbase operates its own blockchain, called Base, which is built on the Ethereum network.

The stock market sell-off on Thursday afternoon may affect the prices of cryptocurrencies, including ether. Despite stronger-than-expected services and manufacturing data for May and initial jobless claims for the week ending May 18, investors' hopes for a September rate cut were dampened. ETF optimism kept ether afloat, but it fell about 4% on Friday. The flagship cryptocurrency hovered above the flat line for the day and week.