Ethereum Bull Market Imminent After ETF Approval: Analyst

Ethereum could soon skyrocket following a bombshell approval move from the Securities and Exchange Commission (SEC). Market analysts reported spot trading in Ethereum exchange-traded funds (ETFs) last week.

After months of punctuated delays and limited engagement, Wall Street’s top regulator gave the go-ahead. long list Number of asset managers who have applied to offer an Ethereum ETF.

Industry observers now expect the second-largest digital coin to increase in value even further.

Despite downward pressure on the price of ETH due to expected outflow of the nearly five-year-old Grayscale Ethereum Trust (ETHE), data firm Kaiko said On Monday, it said asset values ​​would rise over the long term.

Kaiko said he came to his conclusion by looking at what happened to Bitcoin ETFs. approval January: Investors immediately invested money in Grayscale’s GBTC product I wanted to cash it out., because we couldn’t do that before. This caused the price of Bitcoin to decline in the short term.

“Once the ETH ETF is launched, it is reasonable to expect selling pressure on ETH due to outflows or redemptions from Grayscale’s ETHE, which has been trading at a 6-26% discount over the past three months,” the company said.

“Although overall inflows will be disappointing in the short term, the approval has a significant impact on ETH as an asset and removes some of the regulatory uncertainty that has impacted ETH’s performance over the past year,” the company added.

Greg Magadini, director of derivatives at blockchain data provider Amberdata, said: decryption It’s unclear when the actual ETF will begin trading, but there’s definitely a “bull market” around this news.

JP Morgan, the largest U.S. bank, said Friday it expects the fund to begin trading before November.

Once launched in the market, like the Bitcoin fund, the Ethereum ETF will also provide investors with exposure to: ETHIt is the second largest digital coin by market capitalization with shares traded on stock exchanges.

Wall Street’s biggest regulator has been slow to respond to applicants and has pushed back deadlines for decisions. Analysts like Bloomberg and CoinShares said Such cryptocurrency funds will not receive approval until the May deadline.

But things changed last week when rumors emerged. Swirl He said regulators would give their nod to the proposed product. A few days later, That did it—No press releases or comments treat of the cryptocurrency community

that much ETH price As a result, there was an upward trend. It reached $3,968 on Monday, up more than 30% over the past two weeks, according to CoinGecko data.

ETH still needs to rise more than 20% to pass the 2021 all-time high of $4,878.

Edited by Ryan Ozawa.