Regulation
Will the listing of Ethereum Spot ETFs push the price above $4,000?
Ethereum, the second largest cryptocurrency by market capitalization, has seen a significant decline in value following a recent general market downturn. The drop, which saw millions of dollars liquidated from the crypto market in a short period of time, sent the price of Bitcoin, the flagship cryptocurrency, down to $66,000.
As a result, the total crypto market cap lost 3.74% at the time of writing to $2.43 trillion. However, regardless of the bearish movement, Ethereum investors are optimistic about a potential rally that could push the token’s price above $4,000. But to what extent is this possible?
Is Ethereum Price at $4,000 Achievable?
According to costs data from CoinMarketCap, Ethereum has suffered a notable decline over the past 24 hours. According to the data, the coin is currently trading at $3,475, which represents a drop of 2.48% in the recorded time. Looking back, ETH lost around 9.28% over the past seven days but is up significantly by 18.06% over the past 30 days.
Source: CoinMarketCap
Earlier today, Coinfomania reported that Security and Exchange Commission (SEC) Chairman Gary Gensler has hinted that the Ethereum Spot ETF S-1 will likely be approved by the end of summer., precisely between June and the end of September. If the SEC is successful, the listing could result in a significant influx of institutional funds into the product.
This news has sparked a wave of optimism among investors as the prospect of a price rise above $4,000 begins to circulate. Ethereum investors are hoping that Ethereum’s price will reflect Bitcoin’s success after a spot ETF was approved for the asset on January 11. The approval of a spot ETF pushed the value of BTC to a new all-time high of $73,000 with billions in funds flowing into the product from issuers.
Previously, a 19b-4 filing was approved by the SEC, which catalyzed ETH’s rise above 22% to trade above $3,700, highlighting the potential impact of a listing by the regulatory oversight body. Ultimately, the possibility of ETH rising above $4.00 depends on several factors such as general market sentiment and the approval of an S-1 spot ETF.