Ethereum
How Spot Ethereum ETFs Could Impact the Price of ETH: What You Need to Know
The United States Securities and Exchange Commission (SEC) has given the green light for Ethereum spot ETFs to hit major exchanges like the NASDAQ and NYSE, marking a pivotal moment for the world of cryptocurrencies. The move not only signals progress, but also positions Ethereum as the sought-after “digital oil” in the crypto space, similar to Bitcoin’s status as “digital gold.”
But wait… don’t start the party just yet.
Performance evaluation
Despite Ethereum’s rise, it still lags behind The dominance of Bitcoin. On May 24, Bitcoin spot ETFs saw a massive net inflow of US$252 million, continuing a ten-day inflow streak. Notably, Grayscale ETF GBTC remained neutral, while BlackRock ETF IBIT saw an inflow of $182 million and Fidelity ETF FBTC attracted $43.7083 million.
Great players can change the outcome
Big players like BlackRock backing Ethereum mark a turning point, potentially bringing it into the fold of traditional investors. This approval not only validates Ethereum’s potential, but also hints at its growing appeal among institutional investors.
Two-step approval process
The next step will be the 2-step process. Despite the enthusiasm, it is important to note that trading will not begin immediately. The SEC has approved the listing of these ETFs, but the individual ETF registration statements must still be approved. This two-step process involves both SEO approval, which is complete, and product approval, which remains pending.
As a result, actual transactions could still take weeks or even months, similar to the approval process for Bitcoin ETFs.
Why this change of pace for the SEC?
Altcoin Daily’s Aeron suggests the sudden endorsement could be politically motivated, with both presidential candidates seeking support from the crypto community. This quick, somewhat unexpected decision could reflect strategic moves during an election year, indicating the growing influence of the cryptocurrency sector in political arenas.
Wild Ride for ETH Price
Before the SEC announcement, The price of Ethereum went on a roller coaster. It dropped to $3,500, jumped to nearly $3,900 following ETF rumors, and stabilized above $3,800 after confirmation. Despite this, Ethereum still has not reached its November 2021 high of $4,800, currently hovering around $3,700.
With regulatory clarity, Aeron predicts a bullish trajectory for Ethereum. With exchange balances declining and ETF-driven demand emerging, Aeron forecasts a three- to four-fold increase in Ethereum’s value over the next 18 months, potentially reaching $11,000 to $15,000 per month. piece.
This optimistic outlook highlights the transformative potential of recent ETF approvalhinting at Ethereum’s rise to new heights.
The future of Ethereum is wide open. What are you most passionate about?
Also discover: ChatGPT Predicts Massive Ethereum Price Rise Ahead of ETF Listing