The price of Ethereum (ETH) has increased: ETF confirmation to release a wave of demand
The cryptocurrency market has been plagued by speculation, with the price of Ethereum surging more than 20 percent to around $3,792 on speculation that US regulators may finally approve the Ether ETF.
The sudden price rally surprised many traders, as most had expected the Securities and Exchange Commission (SEC) to delay or reject the first Ether ETF by Thursday.
TLDR
Ethereum rose more than 20 percent to $3,792 as expectations grew for the approval of the spot ether ETF by US regulators. Standard Chartered is 80-90% certain that the ether spot ETF will launch in the US this week, predicting a peak volume of 2.39-9.15 million ether ($15-45 billion) in the first 12 months after approval. Bloomberg Intelligence analyst Eric Balchunas increased his forecast for approval from 25% to 75%, citing possible policy changes at the SEC. VanEck and ARK Investment Management are leading the charge for the Space Ether ETF, with decision deadlines set for May 23 and May 24. Ethereum whales have not yet participated in the current rally, and their participation could push the price of ETH above $4,000.
Adding to the worrisome sentiment, Standard Chartered expressed confidence in the launch of Ether spot ETFs in the US this week.
Jeff Kendrick, Head of FX Research and Digital Assets Research at the bank, said they were 80-90% confident of approval and predicted a peak volume of 2.39-9.15 million Ether in the first 12 months following the green light. In US dollars, this ranges from approximately $15 billion to $45 billion.
Bloomberg Intelligence analyst Eric Balchunas has increased his forecast significantly, now at 75%, up from 25%.
In the X-Post, Balchunas mentioned that he was hearing about a possible policy change at the SEC, which previously had everyone scrambling to think the applications would be rejected.
The SEC is set to announce its decision on several ether ETF applications this week, with VanEck and ARK Investment Management leading the charge. These providers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum. Decision deadlines for VanEck and ARK are set for May 23 and May 24.
Update: It's happening. We have at least 5 #Ethereum ETF issuers that have filed revised 19b-4's in the last ~25 minutes. Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin are all listed on the CBOE. pic.twitter.com/pHGt8iRWi8
— James Seyff (@JSeyff) May 21, 2024
On-chain data shows that Ethereum whales have not been able to participate in the rally so far. If these big players decide to enter the market, it could push the price of ETH even higher, possibly above the $4,000 mark and targeting new all-time highs.
Ethereum founder Joe Lubin, founder of crypto infrastructure firm ConsenSys, believes that spot ether ETF approval could lead to a “floodgate” in demand for Ethereum.
He noted that there will be a large amount of natural, degenerate pressure to buy Ether through ETFs.
