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- The approval of spot Ethereum ETF in the United States is on the horizon after the US SEC approved spot Bitcoin ETF based on the approval of BTC futures ETP.
- Crypto whales have already been spotted making large ETH purchases while taking gradual Bitcoin’s profit thus spiking the former volume over $52 billion.
The historic approval of the first crypto spot exchange-traded funds (ETFs) in the United States has sent shockwaves in the entire web3 and digital asset industry. With trading of the 11 spot Bitcoin ETFs set to begin on Thursdays, most crypto assets have already experienced heightened volatility, thus leading to more than $268 million in liquidations.
Nonetheless, experts have unanimously agreed that the crypto bull case scenario will be more robust than the one experienced in 2021. Moreover, more players with deep liquidity are now involved even before the fourth halving that will happen in April.
Why Ethereum Spot ETF is on the Horizon
The Ethereum network has demonstrated its market dominance in the past few years, despite the notable rise of competitive layer one blockchains led by Solana (SOL), Cardano (ADA), and BSC. As the top smart contract network supporting multichain capabilities, Ethereum has remained under the radar of most institutional investors seeking to diversify their crypto portfolios.
In November last year, the leading fund manager with nearly $10 trillion in assets under management (AUM), BlackRock, filed for a spot in Ethereum ETF.
In addition, other fund managers that have received a green light for the spot Bitcoin ETF also intend to offer Ether spot ETF. As a result, Ethereum could soon be available to all investors through traditional stock trading platforms like Bitcoin.
New deadline to obsess over just dropped
May 23rd is the final deadline for decision on VanEck’s spot ETH ETF pic.twitter.com/dgi5EVbPeQ
— Will (@WClementeIII) January 10, 2024
The approval of Ethereum shortly is much more likely to happen since the US SEC already approved the Ether futures ETP. Notably, the agency was compelled to relook into the spot Bitcoin ETF application following the Grayscale Investments’ court win last year.
Meanwhile, Bloomberg ETF analyst Eric Balchunas predicted that there is a 70 percent chance that the spot ETH ETF will be approved by May this year. Furthermore, fund managers have a better understanding of what it takes for the US SEC to approve a crypto spot ETF.
“Ethereum spot ETFs will be approved [but]the SEC will try to carefully craft a precedent that permits them to retain some discretion in determining which digital asset ETFs will be permitted to come to market,”
Joe Carlasare, digital asset lawyer, noted.
ETH Market Outlook and Price Analysis
Following the heightened demand for Ethereum by crypto investors, the altcoin’s daily average traded volume spiked to more than $52 billion on Thursday. Furthermore, ETH/USD reached a fresh two-year high of around $2,660 in the past 24 hours, thus rejuvenating a possible rally toward $3,500 in the coming weeks.
Notably, Ethereum plays a crucial role in providing liquidity to the larger web3 ecosystem and support various stablecoins. As of this report, the Ethereum network had a total value locked of about $32 billion and a stablecoins market cap of around $69 billion.
Meanwhile, the ETH breakout has confirmed the much-awaited altcoin season following the 20 percent spike in the past seven days to trade at
