ETH Price Approaches $4,000 as Market Uncertainty Over ETH ETF Looms

On Monday, Ethereum price rose to $3,900, supported by a wave of bullish sentiment among investors.

Ethereum (ETH) is on track to surpass the $4,000 mark even before the launch of Ethereum spot exchange-traded funds (ETFs) as the market appears to be highly “underallocated,” according to DeFiance Capital founder Arthur Cheong.

In a post on social media platform To support his claim, Cheong cited a survey that found nearly 50% of respondents allocated just 25% of their portfolios to Ethereum, suggesting the market may be underestimating its potential.

The United States Securities and Exchange Commission (SEC). approved Multiple spot ETFs on Ethereum on May 23, following a series of delays. This decision has raised investor expectations that traditional market participants will inject new capital into Ethereum, mirroring the surge seen with spot Bitcoin ETFs that helped BTC set a new all-time high in March at $73,750.

However, ETF issuers still require SEC approval for their registration statements, which detail the information they provide to investors. Unlike exchange filings, there is no set timeline for the SEC to approve these filings, creating uncertainty about when trading will begin.

While a Reuters source is aware of the matter indicated the trade approval process may take days or weeks, without providing specific details. Former SEC Chairman Jay Clayton, in a interview with CNBC, said the start of spot ETH ETF trading is a matter of when, rather than if, describing it as “inevitable,” but acknowledged there are still some unresolved issues. At the time of writing, Ethereum is trading at $3,910, according to CoinGecko data.

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