Potential Approval of Spot Ether ETFs Could Spike Ether's Value to $10,000
Summary:
The potential approval of spot Ether exchange-traded funds (ETFs) in the U.S. could drive Ether’s price to $10,000, according to Andrey Stoychev of Nexo. Recent reports suggest the U.S. Securities and Exchange Commission (SEC) has reversed its stance on Ether ETFs, asking exchanges to update their 19b-4 filings. Despite an increased likelihood of the VanEck's Ether ETF proposal being accepted, the approval process, including S-1 filings, may extend until 2025. However, once approved, it could have a significant positive impact on the market.
The potential sanction of spot Ether exchange-traded funds (ETFs) in the United States may potentially boost Ether's price to $10,000. Though the approval process from the United States Securities and Exchange Commission (SEC) might last for months, the inauguration of the ETF has the potential to significantly amplify Ether's (ETH) value, suggests Andrey Stoychev, head of prime brokerage at Nexo. Stoychev expressed to Cointelegraph that the introduction of ETH ETFs in the US and similar counterparts in Asia could aid the asset in reaching a $10,000 value by the end of 2024, aligning with Bitcoin's post-ETF performance. Ether's recent price surge boosted its price by over 21% in just 24 hours, trading at a two-month peak of $3,771 as of 12:08 pm UTC, based on CoinMarketCap statistics.
The strong performance of Ether coincides with reports that the United States Securities and Exchange Commission (SEC) has reversed its stance on spot Ether ETFs, possibly under political influence, with reports indicating requests for ETF exchanges to update their 19b-4 filings. While the timeline for the potential spot Ether ETF remains uncertain, the recent actions of the SEC signal a positive turn, says Nexo’s Stoychev.
Senior Bloomberg ETF analyst Eric Balchunas has bumped the approval odds for VanEck's Ether ETF proposal slated for May 23rd from 25% to 75%. Yet, this heightened probability is only applicable to the 19b-4 form. According to Bloomberg ETF analyst James Seyffart, Ether ETF issuers will also need S-1 filing approval, a procedure that could delay the process until 2025, says Yunus Ozkaya, the CEO and founder of the FreeBnk app. Despite potential delays, when the approval does come through, it will have a considerable positive impact on the market, even if the S-1 approval process takes additional time.
Published At
5/21/2024 4:04:05 PM
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