05 Jun

Over the last month, Ethereum has seen a robust 20% increase, largely attributed to the approval of eight spot-based ETF applications, a significant driving force behind this surge.

On May 23, the SEC's unexpected approval of these applications sparked a surge in Ethereum's price to a two-month high of nearly $4,000, leading to a flurry of trading activity.

However, Ethereum's momentum has slowed in recent weeks, partly due to market indecision and partly because the ETFs are yet to be launched.

Nevertheless, the approved applicants have initiated the filing of S-1 forms, laying the groundwork for the launch of their funds, expected as early as this month. The impending launches are anticipated to bring a gradual uptick in trading volumes and demand, potentially propelling Ethereum to new record highs in the current year.

The So Far Story of the Spot Ethereum ETF

The first Ethereum exchange-traded fund (ETF) was approved by the Canadian securities commission in April 2021, marking the beginning of the history of Ethereum ETFs.

Purpose Investments, which had already received Canadian clearance for a comparable ETF for Bitcoin in February of the same year, was in charge of this spot-based Ethereum ETF.

However, the Securities and Exchange Commission remained opposed to spot-based Bitcoin and Ethereum ETFs for years due to worries about potential market manipulation. As a result, clearance for these products proved extremely elusive in the United States.

In the latter part of 2023, the regulatory stance shifted, prompted by the SEC's perceived setback in the Ripple case and mounting criticism from both the cryptocurrency sector and supportive voices within Congress.

By the year's end, the SEC began engaging with Bitcoin ETF applicants, offering guidance on filing procedures and revisions ahead of application deadlines.

Ultimately, on January 10, the SEC approved 11 spot Bitcoin ETFs, sparking skepticism about the imminent approval of Ethereum ETFs. However, the regulator surprised many by approving its initial batch of Ethereum ETFs in May.

Ethereum Value Responds

After the acceptance, the price of Ethereum shot up to around $4,000 in a few of days, thanks to the announcement.

Since then, it has decreased to about $3,750, and in order to access their funds, applicants still need to submit S-1 registration documents.

BlackRock's ETF is expected to arrive by the end of June because it has already filed the S-1 paperwork.

The impact of ETH might be significant if the other funds follow suit, and analysts are already projecting significant things for Ethereum based on the spike in demand that would ensue.

ETH is expected to reach $8,000 by the end of the year, according to a recent prediction made by UK bank Standard Chartered, which is among the more impressive ones.

"After approval, we anticipate that spot ETFs will attract inflows ranging from 2.39 to 9.15 million ether within the first year," stated Geoff Kendrick, head of digital assets research at the bank. "With our projection of Bitcoin reaching $150,000 by the end of 2024, this would suggest a level of $8,000 for ether."

Various forecasts vary in their optimism: analysts at AllianceBernstein suggested that ETH could follow BTC's 75% gain post-ETF approvals, potentially reaching around $6,200 by the end of September.

On the other hand, Andrey Stoychev of Nexo predicted in May that ETH could hit $10,000 by the end of 2024, while crypto trader Lark Davis has set a more ambitious target of $15,000 by the conclusion of the 2024-25 bull cycle.

June 2024, Cryptoniteuae

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