As the launch date for the first spot Ethereum ETFs in the United States approaches, experts are predicting a significant price appreciation for the second-largest cryptocurrency in the market. The US Securities and Exchange Commission (SEC) is expected to approve Ethereum ETFs by July 4, according to a recent Reuters report. Discussions between asset managers and regulators are in their final stages, with industry insiders revealing that only “minor” issues need to be resolved before approval, which is likely only “a week or two away.”
The success of Bitcoin-based ETFs launched in the US in January has set a high bar for Ethereum ETFs to follow. The nine new products drew in around $8 billion in assets initially and had accumulated nearly $38 billion by late June. However, industry experts caution that the launch of Ethereum ETFs may not mirror the excitement generated by Bitcoin ETFs. Ethereum’s market cap and trading volumes are significantly smaller than Bitcoin’s, leading to expectations of more muted inflows once the ETFs are live.
While some analysts remain cautious about the impact of Ethereum ETFs on the market, others are more optimistic. Quinn Thompson, the founder and CIO of Lekker Capital, sees the current market conditions as a compelling buying opportunity for cryptocurrencies. He believes that Ethereum has the potential to reach $7,000, while Bitcoin could approach $100,000 by the November election. Thompson criticizes the prevailing negative sentiment on Twitter, suggesting that the current environment is ripe for bullish moves in the crypto space.
Glassnode co-founders have also shared a bullish outlook for Ethereum, citing historical price patterns that resemble the early stages of the 2021 bull market. They propose a target of $7,500 for Ether, based on Fibonacci extensions observed in the previous rally. This analysis indicates a forthcoming strong rally in Ether, potentially pushing its price to new highs in the near future.
Despite the positive projections for Ethereum and Bitcoin prices, analysts warn of the potential for price declines in the crypto market. However, they emphasize that any significant downturn would likely be triggered by unforeseen external events rather than inherent weaknesses in the cryptocurrencies themselves. Overall, the prevailing market sentiment leans towards Ethereum reaching $7,000 and Bitcoin testing the $100,000 mark for the first time. The launch of Ethereum ETFs is expected to inject new dynamism into the crypto market, with the potential to drive further interest and investment in digital assets.