As the highly anticipated launch of the first Ethereum ETFs in the United States approaches, experts are predicting a significant price appreciation for the second-largest cryptocurrency on the market.
Ethereum ETFs on the horizon
According to a recent Reuters reportThe US Securities and Exchange Commission (SEC) could approve Ethereum ETFs as early as July 4, as discussions between asset managers and regulators enter the final stages.
Industry executives and other participants who requested anonymity due to the confidential nature of the negotiations revealed that the process of amending the offer documents has progressed to resolve only “minor” issues, and approval “will likely take no more than a week or two.”
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According to data from Morningstar Direct, the launch of Bitcoin-based ETFs in the US in January was a huge success, attracting around $8 billion in assets. At the end of June, these nine new products had nearly $38 billion in assets, although the holdings of the Grayscale Bitcoin Trust — which converted its $27 billion BTC fund into an ETF simultaneously — fell to $17.8 billion .
However, experts believe that the launch of the new Ethereum ETFs in the Spot Market may not be as impressive as the Bitcoin ETF Debut. James Butterfill, head of research at Coinshares, noted that “Ethereum is not the same size in terms of market cap, nor does it have the same volumes” as BTC.
Given the differences in market size and nature of the two cryptocurrencies, Bryan Armour, ETF analyst at Morningstar, believes Appetizer It could get a lot quieter when Ethereum ETFs launch.
“With Bitcoin, there was pent-up demand for a decade and investor interest was off the charts,” Armor said. “It’s just not going to cause the same excitement.” However, not everyone shares the same cautious outlook.
ETH eyes potential recovery towards $7,500
Quinn Thompson, founder and CIO of Lekker Capital, recently stated that the market is in the midst of “one of the most obvious and compelling crypto buying opportunities in recent memory.”
Thompson further stated that it was “cool” to be bullish in the past, but now it seems that “Twitter has become a competition to see who can have the most negative participation in the ETH ETF.” Thompson further noted:
Personally, I think ETH will hit $7,000 and BTC will make its first attempt at $100,000 by the November elections.
Glassnode co-founders also shared a high price analysis for Ether, stating that if investors look at the history of Ether, similar patterns are developing as in the early stages of the 2021 bull market.
They believe the current structure gives a target of around $7,500 as a final high for Ether, mirroring the Fibonacci extension seen in 2021 and implying a strong Ether rally “soon!”
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Although caution remains regarding the possibility of further price drops, experts argue that such a scenario would require the occurrence of a new exogenous event. General, market sentiment is leaning towards Ethereum reaching $7,000 and Bitcoin’s first attempt at $100,000.
At the time of writing, ETH is trading at $3,460, up over 3% in the past 24 hours as the broader market recovers from the corrections seen over the weekend and earlier in the week.
Featured image of DALL-E, chart from TradingView.com