Because the highly anticipated launch of the primary spot Ethereum ETFs in america nears, experts are predicting a big price appreciation for the second-largest cryptocurrency available in the market.
Ethereum ETFs On The Horizon
In accordance with a recent Reuters report, the US Securities and Exchange Commission (SEC) could approve Ethereum ETFs as soon as July 4, as discussions between asset managers and regulators enter the ultimate stages.
Industry executives and other participants who requested anonymity on account of the confidential nature of the talks revealed that the strategy of amending the offering documents has progressed to resolving only “minor” issues, and approval is “probably not greater than every week or two away.”
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In accordance with Morningstar Direct data, the launch of Bitcoin-based ETFs within the US in January was a serious success, drawing around $8 billion in assets. By late June, these nine latest products had nearly $38 billion in assets, although the holdings of Grayscale Bitcoin Trust – which converted its $27 billion BTC trust into an ETF concurrently – dipped to $17.8 billion.
Nevertheless, experts imagine the launch of the brand new spot Ethereum ETFs is probably not as impressive because the Bitcoin ETF debut. James Butterfill, head of research at Coinshares, noted that “Ethereum just isn’t the identical size by way of market cap, nor does it have the identical volumes” as BTC.
Given the differences in market size and nature of the 2 cryptocurrencies, Bryan Armour, an ETF analyst at Morningstar, believes inflows could also be rather more muted when the Ethereum ETFs launch.
“With Bitcoin, there had been pent-up demand for a decade, and investor interest was off the charts,” Armour said. “This just isn’t going to command the identical excitement.” Nevertheless, not everyone shares the identical cautious outlook.
ETH Eyes Potential Rally Toward $7,500
Quinn Thompson, the founder and CIO of Lekker Capital, has recently stated that the market is in the course of “one of the vital obvious and attractive crypto buying opportunities of recent memory.”
Thompson further claimed that it was “cool” to be bullish prior to now, but now, it seems that “Twitter has turn out to be a contest to see who can have probably the most negative ETH ETF take.” Thompson further noted:
Personally, I believe ETH will reach $7,000 and BTC will make its first attempt at $100,000 by the election in November.
The Glassnode co-founders also shared a bullish price evaluation for Ether, stating that if investors have a look at Ether’s history, similar patterns are developing as within the early stages of the 2021 bull market.
They imagine the present structure gives a goal of around $7,500 as a final high for Ether, mirroring the Fibonacci extension seen in 2021 and implying a robust rally in Ether “soon!”
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While caution stays regarding the opportunity of further price declines, experts argue that such a scenario would require a latest exogenous event to occur. Overall, market sentiment is leaning towards Ethereum reaching $7,000 and Bitcoin’s first attempt at $100,000.
The 1-D chart shows ETH’s price recovery. Source: ETHUSD on TradingView.com
On the time of writing, ETH was trading at $3,460, up greater than 3% over the past 24 hours because the broader market recovers from the corrections seen over the weekend and into the start of the week.
Featured image from DALL-E, chart from TradingView.com