Cryptocurrencies

It could lead to the approval of exchange-traded funds (ETFs) for Ethereum in the states

The approval of exchange-traded funds (ETFs) for Ethereum in the US could push the price of Ethereum ( ) to $10,000.

While the SEC approval process for ETFs could take months, the launch of an ETF could be an important catalyst for the price of Ethereum (ETH), according to Andrei Stoychev, head of prime brokerage at Nexo.

Stoychev told Cointelegraph:

“ETH ETFs in the USA and similar products in Asia could be the engine that helps the asset reach $10,000 by the end of 2024, keeping pace with Bitcoin’s post-ETF performance.”

This prediction comes after a significant surge in Ethereum prices, which rose more than 21% over the past 24 hours to trade at a two-month high of $3,771, as of 12:08 PM UTC, according to CoinMarketCap data.

ETH/USDT, 1-day chart. Source: CoinMarketCap

Ethereum’s rally comes after reports that the US Securities and Exchange Commission (SEC) has changed Ethereum ETFs – possibly due to political pressure – with reports that it has asked ETF exchanges to update their 19b-4 filings.

While the timeline for a potential spot ETF is still difficult to predict, the SEC’s latest move is a positive sign, according to Nexo’s Stoychev:

“This apparent change in perception toward Ethereum ETFs may signal a shift in the SEC’s stance. One speculative reason for this may be the upcoming US presidential election, which has come to highlight that cryptocurrency users may play a specific role, especially in swing states.

Related: Fidelity reportedly amends its ETF S-1 filing and removes ETH stakes

ETF approval could take until 2025

The next SEC deadline is May 23, regarding VanEck’s Ether ETF proposal. Eric Balchunas, chief analyst at Bloomberg ETFs, raised the odds of approval of this proposal to 75%, up from just 25%. However, this increased probability pertains only to Form 19b-4.

However, ETF issuers will also need to get approval for their S-1 filings, according to Bloomberg ETF analyst James Seyphart, who wrote in a May 20 post:

“We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus the direct EtH ETF… however, if we are right we will see these theoretical approvals later this week. It *must* mean that S-1 approvals are a matter of “when” and not “if”…”

While the SEC will likely accept VanEck’s filing, approval for S-1 filings could be delayed until 2025, according to Yunus Ozkaya, CEO and founder of FreeBnk, who told Cointelegraph:

“I don’t expect anything to be tradable before 2025, including S-1 approval. However, when it does happen, it will have a really big positive impact on the market, even if the S-1 approval takes more time. “I expect they will approve it by May 23 relative to the 19b-4 deadline set by Vanek.”

magazine: Trader turns $3K into $46M in PEPE, Ethereum Gas Fix, Tornado Developer Convicted: Hodler’s Digest, May 12-18

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