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With the upcoming launch of the first Ethereum spot investment funds in the United States approaching, experts are predicting a significant rise in the prices of the second largest cryptocurrency on the market.
Ethereum ETFs on the Horizon
According to what was recently reported by Reuters a reportThe U.S. Securities and Exchange Commission (SEC) could approve Ethereum ETFs as soon as July 4, as discussions between asset managers and regulators enter their final stages.
Industry executives and other participants, who requested anonymity due to the confidential nature of the talks, revealed that the process of amending the offer documents had progressed to resolving only “minor” issues, and that approval “may not take more than a week or two.”
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According to Morningstar Direct data, the launch of Bitcoin-based ETFs in the United States in January was a great success, attracting about $8 billion in assets. By late June, the total assets of these nine new products reached about $38 billion, although the holdings of Grayscale Bitcoin Trust — which converted its $27 billion BTC fund into an exchange-traded fund at the same time — fell to $17.8 billion.
However, experts believe that the launch of new Ethereum spot ETFs may not be as impressive as Bitcoin ETF Emerges“Ethereum is not the same size in terms of market cap, nor does it have the same volumes” as Bitcoin, noted James Butterville, head of research at CoinShares.
Given the differences in market size and the nature of cryptocurrencies, Brian Armour, ETF analyst at Morningstar, believes, Inflows It may be more muted on the launch of Ethereum ETFs.
“With Bitcoin, there has been pent-up demand for a decade, and investor interest has been off the charts,” Armor said. “This won’t have the same excitement.” However, not everyone shares the same cautious outlook.
ETH is eyeing a potential rally towards $7,500
Quinn Thompson, Founder and CTO of Laker Capital, recently announced, advertiser That the market is in the midst of “one of the most visible and attractive cryptocurrency buying opportunities in recent memory.”
Thompson also claimed that it was “cool” to be bullish in the past, but now it seems like “Twitter has become a competition to see who can get the most negative on the ETH ETF.” Thompson also noted:
I personally believe ETH will hit $7,000 and BTC will make its first attempt at $100,000 by the November election.
Glassnode founders also participated bullish price analysis For Ether, he stated that if investors look at the history of Ether, similar patterns are developing as in the early stages of the 2021 bull market.
They believe the current structure gives a target of around $7,500 as the final high for Ethereum, reflecting the Fibonacci extension seen in 2021 and implying a strong rally in Ethereum “soon!”
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While caution remains about the possibility of further price declines, experts claim that such a scenario would require a new external event to occur. Market sentiment It is leaning towards Ethereum hitting $7,000 and Bitcoin’s first attempt at $100,000.
At the time of writing, ETH is trading at $3,460, up over 3% over the past 24 hours as the broader market recovers from the corrections seen over the weekend and into the week.
Featured image by DALL-E, chart by TradingView.com
