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Ethereum ETF Approval Next? ETH Price Over $2.5K as Traders Bet on ETH Product

Last Updated January 11, 2024 10:47 AM
Teuta Franjkovic
Last Updated January 11, 2024 10:47 AM

Key Takeaways

  • Ethereum ETFs are poised to gain traction now Bitcoin spot ETFs have regulatory approval.
  • Prominent crypto investor DCInvestor predicts Ethereum will outperform most assets in the current market cycle.
  • Ethereum’s prospects look bright as anticipation builds for the approval of a spot ETF in the United States, following Bitcoin’s recent approval.

The long-awaited approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has opened the floodgates for further innovation in the cryptocurrency space.

With 11 spot Bitcoin ETFs now available to investors, the stage is set for the next major development: spot Ethereum ETFs.

Ethereum ETFs Emerge as New Bullish Catalyst

Ethereum, the second-largest cryptocurrency by market capitalization, has long been considered a prime candidate for an ETF. The asset’s strong fundamentals, growing adoption, and established ecosystem have made it a compelling investment proposition for institutional investors. And with the SEC’s recent decision to approve Bitcoin ETFs, the regulatory hurdles for Ether ETFs have significantly diminished.

The recent approval of spot Bitcoin ETFs by the SEC has sent Ether prices  skyrocketing, as traders speculate that the regulatory agency may soon approve spot Ethereum ETFs as well. ETH traded at over $2,600 in early European hours on Wednesday, up 8% in 24 hours. Meanwhile, Bitcoin prices  went up by 1.3% in the same period. BTC had been falling due to a series of tweets from the temporarily hacked SEC’s X account.

Ethereum chart
Credit: TradingView

Conor Ryder, head of research at the stablecoin company Ethena Labs said :

“Now that the Bitcoin ETF speculation has come to fruition it looks like traders are rotating to ether to get ahead of the next narrative, an ETH ETF, while ETH looks relatively cheap compared to most other tokens.”

The SEC should make a decision on spot ETH ETF applications in May. BlackRock, Invesco , Ark, and VanEck are among the companies vying for approval, with Grayscale also seeking to convert its existing Ethereum Trust (ETHE) into an ETF.

Ryder believes  the approval of spot Bitcoin ETFs has fueled the recent rally in Bitcoin’s price. Meanwhile, he says Ethereum has failed to gain traction compared to smaller blockchain networks like Solana and Cardano.

Ethereum ETFs Poised for Breakout

On January 9, crypto Twitter personality DCInvestor Ethereum would outperform most other assets once the current market cycle ends. 

The prediction is based on the assumption that Ethereum is the next logical candidate for a spot exchange-traded product (ETP). DCInvestor also noted that Ethereum already has futures-based ETFs. This, he says, indicates that the SEC could well approve a spot ETF soon.

 YouTuber Crypto Rover expressed a on Ethereum’s future to his 635,000 YouTube subscribers. 

He : 

“An Ethereum spot ETF is the next big narrative on the horizon. After the Bitcoin spot ETF is approved and the hype surrounding it subsides, the focus will shift to Ethereum.”

He attributed the current lack of attention on Ethereum to the recent surge in Solana’s price. In the past 90 days, SOL has surged by 360%, while Ethereum’s performance has been relatively modest, with a 48% increase. He believes Ethereum will regain its prominence once the market calms down and the focus turns to its potential for institutional adoption.

Institutional Demand Drives Approval Prospects

In a recent analysis, Bloomberg ETF analyst James Seyffart pointed out  that the SEC’s approving Ethereum futures and the CFTC’s classifying ETH as a commodity suggest that the possibility of the SEC approving spot Ethereum ETFs this year is increasing.

A host of prominent financial institutions, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, are vying for SEC approval to launch spot Ether ETFs.

The SEC has set deadlines for each applicant to receive a decision on their proposal:

  • VanEck: May 23
  • ARK 21Shares: May 24
  • Hashdex: May 30
  • Grayscale: June 18
  • Invesco: July 5
  • Fidelity: August 3
  • BlackRock: August 7

This intense competition among established financial giants underscores the growing demand for Ether ETFs and the potential impact they could have on the cryptocurrency market.

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