In the world of cryptocurrencies, Ethereum holds a significant position as the second-largest cryptocurrency by market capitalization. Its value has steadily grown over the years, but according to one crypto analyst, there might be a specific event that could propel Ethereum’s price to new heights. Michaël van de Poppe, the CEO and founder of MN Trading, believes that Ethereum has the potential to reach a price level of $3,500. However, he notes that this surge in price might only occur after Bitcoin “gets its shine.”
Van de Poppe’s price prediction for Ethereum is connected to the anticipation surrounding the approval of a Spot Bitcoin ETF. The crypto analyst suggests that once the Spot Bitcoin ETF is approved, Ethereum might follow suit and experience a significant rally. This correlation implies that the approval of an Ethereum Spot ETF could be the spark that drives Ethereum’s price to $3,500 in Q1 2024. It is worth noting that many analysts speculate a 90% chance of the Spot Bitcoin ETF’s approval by January 10, 2024.
Ethereum Spot ETF
Multiple asset managers have already applied to the Securities and Exchange Commission (SEC) for an Ethereum Spot ETF. However, all eyes are currently focused on the pending Spot Bitcoin ETF applications, as they are expected to have a quicker decision process compared to Ethereum. Despite this, the approval of an Ethereum Spot ETF remains a possibility, and if it happens, it could be a game-changer for Ethereum’s price trajectory.
There is historical evidence suggesting that Ethereum Spot ETFs might not receive the same enthusiastic reception as Spot Bitcoin ETFs have experienced. This comparison is based on the launch of futures ETFs for both cryptocurrencies. In 2021, Bitcoin futures ETFs were already in place, with the ProShares Bitcoin Strategy (BITO) ETF being the pioneer. On its launch date, BITO saw an impressive trading volume of over $1 billion in the first two days. In contrast, Ethereum futures ETFs only recently launched, and their trading volumes did not reach the same heights as BITO.
The Potential Impact
If an Ethereum Spot ETF is approved, its impact on Ethereum’s price could be substantial. The influx of institutional investors and increased accessibility provided by ETFs could lead to a surge in demand for Ethereum. This surge, coupled with limited supply, could drive the price to the projected $3,500 mark. However, it is important to note that this price prediction hinges on the approval of both the Bitcoin and Ethereum Spot ETFs.
The potential approval of an Ethereum Spot ETF has garnered attention within the cryptocurrency community. Analysts, including Michaël van de Poppe, predict that this approval could be the catalyst behind Ethereum reaching a price level of $3,500. However, the correlation with the approval of a Spot Bitcoin ETF and the historical discrepancy in trading volumes between Bitcoin and Ethereum futures ETFs must be considered. Nonetheless, the future of Ethereum remains promising, and the introduction of an Ethereum Spot ETF could open a new chapter in its price trajectory. Investors and enthusiasts alike eagerly await the decision of regulatory authorities regarding the potential approval of these ETFs, as their impact could reshape the landscape of the cryptocurrency market.