Ethereum
Is Spot Ethereum ETF Approval a News Sales Event?
As the final decision on VanEck’s spot Ethereum exchange-traded fund (ETF) approaches, the financial and crypto communities are abuzz.
The crypto community is wondering if the potential approval has been priced into the market value of Ethereum (ETH) or if it could lead to significant changes in the market.
Ethereum ETF decision expected around 4:00 p.m. ET
Eric Balchunas, Bloomberg ETF analyst, anticipates an announcement from the SEC around 4:00 p.m. ET today. Based on previous decisions, like the one for the Bitcoin Spot ETF approved at 3:45 p.m. ET, we could expect a similar timeline.
Markus Thielen of 10X Research suggests that SEC Chairman Gary Gensler could precede the decision with a tweet warning about investment risks. This is similar to its approach before the Bitcoin ETF (BTC) was approved.
Learn more: Ethereum ETF explained: what it is and how it works
This tweet, expected around 9 a.m. ET, could indicate whether approval is likely. Previously, the The SEC has issued warnings ahead of important crypto-related decisions, including the Bitcoin Futures ETF.
Many in the crypto industry are wondering if this approval could lead to a “selling the news” scenario. However, Crypto Nova, a well-known crypto analyst, claims that the market still needs to adapt to such an event. Crypto Nova suggests investors review the data.
“Since the last bull run of 2021, Ethereum (and alts in general) have only gone down relative to Bitcoin. The market had its eyes on Bitcoin purely due to the ETF spot approval and halving. None of this has been transferred to Ethereum yet,” Crypto Nova said.
ETH/BTC price performance. Source: Trading View
This indicates that a new season, historically accompanied by significant gains for Ethereum, has not yet begun. “None of the potential effects of approval are taken into account,” claims Crypto Nova, highlighting Ethereum’s enormous upside potential. She predicted a $10,000 price target for Ethereum this year.
Conversely, investors should keep in mind the market reaction after the approval of the Bitcoin Spot ETFwhere the price of Bitcoin fell by more than 20% compared to the $38,000 Tier. This serves as a warning that the approval could still lead to a sell-off.
Learn more: 11 Cryptos to Add to Your Portfolio Ahead of Altcoin Season
However, the long-term outlook remains optimistic. Thielen believes that an approved Ethereum ETF could reposition Ethereum from a utility-focused asset to a store of value asset, similar to Bitcoin’s transformation after 2017.
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