Ethereum
Ethereum Price Up 22% on Rising Chances of ETF Approval, Bitcoin Record Possible
- Ethereum surged in the past 24 hours as the odds of an imminent ETF approval climbed.
- Positive signs have come from the SEC, which is expected to make a final decision on two proposals this week.
- The approval could also be a catalyst for Bitcoin to reach new record highs, according to Standard Chartered.
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Ethereum soared 22% on Tuesday on growing confidence that cryptocurrency-related ETFs could be approved as early as this week.
Just as it was done for bitcoin In January, efforts were underway to create an Ethereum spot exchange-traded fund, making the cryptocurrency accessible to a wider range of investors.
Although investors have long anticipated regulatory pushback, the Securities and Exchange Commission recently required potential issuers to update their filings. Bloomberg reported. This is a positive sign ahead of decision deadlines for at least two spot ETFs, one from VanEck and the other from Ark 21Shares.
According to Eric Balchunas, an analyst at Bloomberg Intelligence ETF, the chances of approval rose from 25% to 75% in a single day on Monday. At the same time, the chances of approval by May 31 increased from 10% to 61% on May 31. Polymarket betting platform.
ETF approvals would boost ether’s chances of reaching $8,000 by the end of this year, according to Geoff Kendrick, head of foreign exchange research at Standard Chartered.
The bullish forecast is one he has maintained since March, saying fund approval would result in inflows of $15 billion to $45 billion into the token. Ultimately, ether could reach $14,000 by the end of 2025, he reiterated in a new study on Tuesday.
Additionally, ETFs would largely avoid the same situation as Bitcoin funds, which experienced considerable capital outflows and price fluctuations after an initial boom period, he added.
On the one hand, Kendrick says inflow volatility will be minimal because ether lacks investment alternatives that could compete with ETFs, such as a Microstrategy equivalent. This company’s huge bitcoin reserve means its shares move in line with the token.
Second, large outflows are also less likely to be a problem for ether, Kendrick pointed out. This posed a challenge for Bitcoin after its ETFs hit the markets as the funds became a major competitor in the market. Pre-existing Grayscale Bitcoin Trustleading to a sales crisis.
“The ETH Grayscale trust is smaller as a percentage of market cap than that of BTC, so any forced sales like what happened with the BTC approval after the ETF should be less significant,” Kendrick said in a written comment.
Once Ether funds are established, the high prices they can achieve bode well for Bitcoin, Kendrick added. Already, the apex token has jumped 6.7% this week thanks to ether’s gains.
“The approval of the ETH ETF will further legitimize the sector and therefore will also be positive for BTC. I would expect a new all-time high for BTC by the weekend (up to the level of 73,798 USD (March 14),” Kendrick wrote.