Coinspeaker
Ethereum (ETH) Reclaims $3,000 as ETF Sentiment Grows Deeper
In the early hours of today, the second largest cryptocurrency by market capitalization, Ethereum registered a price surge that has helped it reclaim the $3,000 level.
Ethereum (ETH) is currently trading at $3,061.99 with a 4.36% increase in the past 24 hours. This is a remarkable growth considering that the broad crypto market is facing a downtrend. With an erratic price surge in the past week, top assets have faced massive liquidations in the past weeks.
Spot Ethereum ETF Hype Fueling Price Surge
The jump in Ethereum’s price comes as the potential spot Ethereum ETF issuers turn in their amended S-1 filing as requested by the United States Securities and Exchange Commission (SEC).
For context, the US SEC received spot Ethereum ETF S-1 registrations from interested investment asset management firms about two weeks ago. This move came after the regulator approved all the 19b-4 filings from BlackRock, Fidelity, VanEck, Grayscale, ARK 21Shares, Franklin Templeton, Bitwise, and Invesco Galaxy. A few days later, the Commission returned the funds with some light comments.
A refiling of the S-1 amendments was requested with the deadline fixed for July 8. On Monday, the regulator received feedback from VanEck and 21Shares while Bitwise submitted earlier. With this kind of progress so far, analysts and market observers are confident that their proposed rule change will be up for trading by mid-July.
Nate Geraci, president of The ETF Store, is one of those who predicted that the SEC could approve the necessary S-1 filings by July 12, leading to the Ethereum ETF starting trading by July 15. Senior Bloomberg ETF analyst Eric Balchunas equally shared a similar sentiment about the spot Ethereum ETF trading approval timeline.
Also, Steve Kurz, head of asset management at Galaxy Digital, forecasted that the Commission will approve the Ethereum ETF to start trading before the end of July.
Implication for Broader Crypto Market
With the launch of the spot Ethereum ETF trading approval in view, Ethereum price has started kicking off. Still, more impact is expected when the offering finally goes live. In a report, K33 Research, a crypto analytics firm, detailed expectations of the crypto industry after the spot Ethereum ETF launch.
The firm maintained that ETH ETF will absorb 0.75% to 1% of the total Ethereum in circulation within the first five months of launch. This supports Gemini’s prediction, which expects $5 billion to flow into the ETFs in the first six months. Ultimately, the potential launch of Ethereum ETF could positively affect the cryptocurrency market and even renew a bull run for Ethereum.
Furthermore, it could also bring about the birth of other crypto ETFs and a massive adoption of digital assets-based products. As it stands, VanEck and 21Shares have filed for spot Solana ETFs with the SE
Ethereum (ETH) Reclaims $3,000 as ETF Sentiment Grows Deeper
