Ethereum price soared to a two-month high at $3,700 today as analysts significantly boosted their expectation that a spot ETH ETF could be approved. The coin currently trades at $3,669. Analysts predict a $4K price point by the end of the week.
Ethereum (ETH), the world’s second-largest cryptocurrency, has seen a strong surge in value, with an 18% increase in the last 24 hours. This rally is fueled by growing optimism surrounding the approval of a spot Ethereum ETF.
The value of ETH currently stands at $3,669.88, reflecting a 0.3% rise within the past hour and an impressive 18.1% surge since yesterday. The current value of ETH is 25.9% higher than its value a week ago. Over the past 24 hours, the trading volume of Ethereum reached an impressive $36,238,466,706.
Ethereum ETF Approval Possibility Loams Around
Ethereum’s price increased by more than 18% on May 20, following a prediction by Eric Balchunas, a senior analyst at Bloomberg, that it would increase from 25% to 75%. As its previous stance demonstrated little engagement with ETF registrants, Balchunas noted that the United States SEC was probably subject to political pressure.
Aside from the lack of official substantiation from the regulator, Balchunas added that the SEC is reportedly requesting that exchanges such as the NYSE and Nasdaq update their filings. Regarding the registration requirement for individual funds (S-1s), Nate Geraci, president of the ETF Store and co-founder of the ETF Institute, stated that the ultimate decision is pending.
SEC decision deadline this week on spot eth ETFs…
— Nate Geraci (@NateGeraci) May 19, 2024
SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements) for ETFs to launch.
Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here).
Geraci posits that the exchange rule modifications (19b-4s) might be sanctioned by the SEC in a distinct manner from the registration of the fund (S-1).
Given the intricacies and potential hazards linked to frameworks encompassing proof-of-stake (PoS) cryptocurrencies, the regulatory body is afforded an extended period to verify and sanction said documents.
ETH Price Prediction on The Back of Ether ETFs
A decision regarding the VanEck spot Ethereum ETF is expected to be announced on Thursday, May 23. Therefore, it is reasonable to anticipate ongoing price fluctuations. Any positive development can significantly boost the Ether price, potentially pushing it to $4,000 or even higher.
A surge of activity from Ethereum’s biggest players has been observed, with a massive acquisition of 110,000 ETH valued at an astounding $341 million within the past 24 hours.
In addition, the ETH/BTC pair has experienced a significant increase, even in the face of Bitcoin’s strong rally. Consequently, certain individuals in the market have begun swapping their Bitcoins for Ethereum.
As the #SEC requires exchanges to expedite the update of 19B-4 documents on $ETH #ETFs, the probability of approval of $ETH #ETFs has greatly increased.
— Lookonchain (@lookonchain) May 21, 2024
James Fickel(@jamesfickel) continued to borrow 350 $WBTC($25M) from #Aave and exchanged it for 6,905 $ETH to go long the… pic.twitter.com/IYFmQyHVIP
The upcoming decision regarding spot Ethereum ETFs has sparked a notable increase in attention toward the expirations of weekly and monthly ETH options. Deribit has recorded an Ether options open interest of $867 million for May 24, which jumps to an impressive $3.22 billion for May 31.
By contrast, the monthly open interest for ETH options on CME is only $259 million, while OKX has $229 million.
Also Read: Bitcoin Surges Over $71K and Short Traders Take Ls
Biden’s Drastic Policy Change on Crypto Is Worrisome
There has been considerable speculation regarding President Biden’s position on cryptocurrencies, with several individuals expecting him to moderate his posture before the election. Some consider the recent development concerning the Ethereum ETF to be the preliminary sign of this expected transition.
Analysts anticipate that Biden’s administration will adopt a more lenient stance toward crypto if not an outright reversal, so as not to alienate potential voters in a potentially contentious election. The move comes on the back of Trump’s open support for crypto.
Also Read: Trump Holds on to Crypto as His New Campaign Strategy Against Biden
By strategically avoiding a complete commitment to the crypto issue, Biden positions himself as a candidate who recognizes its significance while avoiding divisiveness. However, some contend that Gary Gensler’s replacement, before his tenure concluding in 2025, would more explicitly communicate the administration’s position on cryptocurrencies.
Cryptopolitan Reporting by Florence Muchai
