Ethereum ETF approved: Expert predicts it can reach $10,000

Crypto Holic May 24, 2024
How Will Spot ETH ETF Approval Effect Crypto Market Blockchain Adoption

Spot Ether (ETH) exchange-traded funds (ETFs) made significant progress on Thursday (May 21, 2024) as the U.S. Securities and Exchange Commission (SEC) approved crucial regulatory filings related to them, marking a major milestone for the second-largest cryptocurrency. However, these ETFs are not yet ready for trading. While the SEC has approved the 19b-4 forms associated with the ETFs, the S-1 filings must still receive approval before investors can begin purchasing them.

Andrey-Stoychev
Andrey-Stoychev

Andrey Stoychev, Head of Prime Brokerage at Nexo, predicted that Ethereum’s price could soar to $10,000 if the United States Securities and Exchange Commission (SEC) approves a spot Ethereum Exchange Traded Fund (ETF). 

HOW IS THIS POSSIBLE?

According to CoinTelegraph, Stoychev believes that while the SEC’s approval process may take months, it could be the primary catalyst for Ethereum’s price surge, helping it match Bitcoin’s performance post-ETF approval.

“ETH ETFs in the USA and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF,” Stoychev commented.

This optimistic forecast follows a notable bullish trend for Ethereum, with its price recently climbing to a two-month high of $3,700, marking a 21% increase in just 24 hours. The rally is fueled by reports suggesting that the SEC may be reconsidering its stance on spot Ethereum ETFs, instructing exchanges to update their 19b-4 filings.

Stoychev highlighted that although the timeline for potential spot Ethereum ETF approval remains uncertain, the SEC’s recent actions are promising for the cryptocurrency industry. He speculated that the upcoming US presidential election might be influencing the SEC’s changing perception, as crypto users could play a significant role, particularly in swing states. However, he noted that issuers will also need to secure S-1 filings approval.

Bloomberg ETF analyst James Seyffart emphasized that S-1 approvals could take weeks to months. He expressed optimism that once 19b-4 approvals are granted, S-1 approvals are likely a matter of “when” rather than “if.”

Yunus Ozkaya, CEO and founder of the FreeBnk app, offered a more cautious perspective, suggesting that the entire process might be delayed until 2025. He anticipates that tradable ETFs, including S-1 approvals, might not be available until 2025. Despite this, Ozkaya believes that eventual approval will have a significant positive impact on the market.

Investors should proceed with caution and comprehensive investigation before investing in Ethereum ETFs or any other cryptocurrency. Market volatility, regulatory changes, and other unanticipated events can have a major impact on prices and returns. For those looking for a more balanced approach, the Defi Board Options Exchange (DBOE) provides a variety of risk management tools and strategies such as options contract, making it a safer way to enter the volatile world of cryptocurrency trading.

Disclaimer: The information in this article is not intended as investment advice. Cryptocurrency investment activities are not legally recognized or protected in some countries. Cryptocurrencies always involve financial risks.

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