Ethereum
“Opportunity timing”: Bitcoin and Ethereum suddenly prepare for a $4.2 trillion ETF price bomb
Bitcoin
Bitcoin
and Ethereum shot higher, climbing as meme stock traders identify surprising new target.
The price of bitcoin has soared to more than $70,000 per bitcoin, nearing its all-time high, while Ethereum has surged about 20% to nearly $4,000 per ether. as the crypto market prepares for a “crucial” vote in Washington this week.
The massive rally in Bitcoin and Ethereum comes after the US Securities and Exchange Commission (SEC) requested an urgent update from those who had filed to issue exchange-traded funds (ETFs) spot for Ethereum, with analysts predicting that imminent approval could trigger a $4.2 trillion price earthquake.
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The price of Bitcoin rose sharply along with the price of Ethereum after analysts increased the… [+] chances of an Ethereum spot ETF being approved this week.
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The SEC’s opening communication with potential fund managers was seen as a sign that it could approve an Ethereum spot ETF sooner than expected, potentially even this week.
Influential ETF analysts James Seyffart and Eric Balchunas of Bloomberg Intelligence increased their chances of eventual approval to 75% from 25% previously, along with Balchunas. assignment to apparent opposition to crypto compared to recent adoption by 2024 Republican candidate Donald Trump.
Meanwhile, the odds of Ethereum ETF spot approval by May 31 on Polymarket, a prediction market, increased from 13% to 73%.
“Yesterday, surprisingly, the SEC asked exchanges to update and make changes to their ethereum spot ETF filings on an expedited basis,” wrote K33 senior analyst Vetle Lunde. a report. “This is a strong indicator that Ethereum spot ETFs will be approved before VanEck’s final deadline of Thursday, May 23.”
A decision is expected this week on applications for Ethereum spot exchange-traded funds (ETFs), first from VanEck and then from Ark/21, expected on Thursday and Friday, respectively.
“The key now will be whether the SEC actually approves the Ethereum spot ETF applications on Thursday,” Standard Chartered analyst Geoffrey Kendrick wrote in an emailed note. “Remember when the same thing happened for Bitcoin ETFs (January 10). The approval came right at the close of the US cash stock market on the 10th and followed the report on the SEC X account being hacked on the 9th, also about the same time of day.”
Kendrick said he expects the arrival of Ethereum spot ETFs on Wall Street to help drive the price of Ethereum to $8,000 by the end of 2024 and $14,000 by by the end of 2025.
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The price of Ethereum has increased alongside the price of Bitcoin over the past year.
Forbes Digital Assets
“The Ethereum news, if correct, comes at an opportune time for Bitcoin,” Kendrick wrote, highlighting inflows into Bitcoin ETFs that hit a new all-time high of $12.9 billion.
U.S. spot bitcoin ETFs reported a sixth consecutive day of inflows yesterday, the longest positive streak the funds have seen since mid-March, according to SoSoValue data. reported by The Block. The spot Bitcoin ETF fleet has proven extremely successful since its debut in January, becoming one of the fastest-growing ETFs of all time.
“The approval of an Ethereum ETF will further legitimize the sector and therefore be positive for Bitcoin as well,” Kendrick added. “I would expect a new all-time high for Bitcoin by the weekend, up to the $73,798 level from March 14. And further out, that only adds more comfort to my forecast of $150,000 for the end of 2024 and $200,000 for the end of 2025.”
If the price of Bitcoin and Ethereum reach the levels predicted by Kendrick, they would together be worth nearly $4.2 trillion.