With the impending launch of the first spot Ethereum ETFs in the United States, industry experts are speculating about the potential price impact on the second-largest cryptocurrency in the market. The US Securities and Exchange Commission (SEC) is expected to approve Ethereum ETFs by July 4, as discussions between asset managers and regulators reach their final stages. According to insider sources, the process of amending offering documents is nearly complete, with only minor issues left to resolve. Approval is anticipated within the next week or two, leading to a surge in market activity.
The success of Bitcoin-based ETFs launched in the US in January set a high benchmark for future cryptocurrency ETFs. The nine new products attracted around $8 billion in assets initially, growing to nearly $38 billion by late June. However, industry experts are projecting a less dramatic response to the introduction of spot Ethereum ETFs compared to the Bitcoin ETF debut. James Butterfill, Coinshares’ head of research, highlighted the market cap and volume differences between Ethereum and Bitcoin, suggesting that Ethereum may not generate the same level of interest as Bitcoin did.
While some analysts express caution regarding the potential impact of Ethereum ETF approval, others like Quinn Thompson, founder and CIO of Lekker Capital, believe that the current market presents an attractive buying opportunity for cryptocurrencies. Thompson’s bullish outlook includes a price target of $7,000 for Ether and the first attempt at $100,000 for Bitcoin by the November election. The Glassnode co-founders also support a positive price analysis for Ether, citing historical patterns that indicate a potential rally towards $7,500 in the near future.
Despite lingering concerns about the possibility of price declines, overall market sentiment leans towards positive price movements for Ethereum and Bitcoin. Experts suggest that any significant downturn would likely require a new external event to occur, as current conditions favor bullish outcomes for both cryptocurrencies. As anticipation builds around the approval of Ethereum ETFs, investors are closely monitoring price trends and preparing for potential market reactions to the new investment products.
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