Ethereum
SEC set to approve Ethereum ETFs
Mon Jul 08 2024 ▪ 3 min read ▪ by Luc Jose A.
The crypto community is holding its breath as SEC approval of Ethereum ETFs appears imminent. Matrixport expects a favorable decision this week. The stakes are high: ETF approval could propel Ethereum to new highs and boost confidence in the cryptocurrency market.
SEC Set to Greenlight Ethereum ETFs
The wait for the SEC Approves Ethereum ETFs is generating considerable interest in the crypto world. Matrixport, a key player in the sector, says the likelihood of a quick approval is high, based on the SEC’s history of quick approvals. Investors will recall that the SEC recently approved Form 19-B filings with unusual speed, fueling the current optimism.
Financial giants like BlackRock, Fidelity and Grayscale are already preparing to submit their S-1 forms, anticipating an earlier-than-expected ETF approval. This prospect is reinforced by statements from Nate Geraci, president of ETFstore, who noted that the adjustments requested by the SEC in previous reviews were minor. According to himsuggesting that ETFs could begin trading within two weeks of approval, with Bloomberg experts predicting approval as early as July 15.
ETH Growth Prospects with ETFs
The SEC’s approval of Ethereum ETFs could have a profound impact on the cryptocurrency market. Matrixport anticipates a significant increase in the price of Ethereum, potentially as high as $3,400 following this approval. This forecast is based on an analysis of historical price movements, where substantial increases have followed similar SEC decisions. Investor confidence and market activity are expected to increase with the launch of the ETFs, creating an environment conducive to price increases.
Despite the current bear market backdrop, asset management firm Bernstein has set a long-term price target of $6,600 for Ethereum. This optimism is based on growing institutional interest and the potential for ETF growth following approval. Historical precedent shows that assets like Bitcoin have seen significant gains following comparable regulatory approvals, reinforcing the belief that Ethereum could follow a similar trajectory.
Currently, Ethereum is trading around 3,000 USDwith trading volume up 57% in the last 24 hours. These figures indicate renewed interest and increased speculative activity as investors anticipate imminent regulatory decisions. Critical levels to watch are the support at $2,900 and the resistance at $3,100, breaks of which could signal significant price movements.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.