The Ethereum Spot ETF is tied to the price of the crypto token, and it allows traders to buy and sell Ethereum tokens without needing to own or create a crypto wallet. After the green light was given by the SEC about ETH Spot ETFs, there were questions about its price getting to $10k. In this article, we will explore the changes of this happening.
Ethereum Spot ETF Approval
The crypto community was positively surprised after the Securities and Exchange Commission approved exchanges to allow the listing of the Ethereum spot ETFs. As reported by Reuters, the SEC approved applications from Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of Ethereum. Apparently, this is part of the first steps to the eventual trading of the spot ETFs later this year.
Many expected the SEC to give the spot Ethereum ETFs a thumbs down in their usual manner. But things took a positive turn after the commission told companies filing for the ETFs to make some changes to their applications for approval. Nevertheless, the ETF issuers also have to get the green light before the products can launch
Andrew Jacobson, vice president and head of legal at 21Shares, expressed his excitement, saying they hope to get the spot Ethereum ETFs trading before the end of 2024. “This is an exciting moment for the industry at large,” he said.
The Market Situation After the Recent Approval
It was a mixed reaction in the market with the recent partial approval of the Ethereum spot ETFs. Immediately after the news spread, the market reacted with a little upward movement, with Ethereum getting close to more than $4,000. However, this was immediately disrupted by a steady downward trend, reducing the price to around the $3,700 range.
According to information from Glassnode, the majority of traders are leaning towards short positions. Apparently, those trading within the dYdX exchange were the most bearish, with over 64% bearish tendency.
According to another analysis from an X crypto analyst @stacy_muur, Ethereum might not receive any significant effect from the recent development. The reason is that the approved spot Ethereum ETFs have not begun trading on exchanges. Thus, it could take a few months before the second-largest cryptocurrency will start to see any effect.
“For now, it makes sense to find an entry point before the actual spot ETF listing at the lowest price possible, taking advantage of the current ‘sell the news’ trend,” the X analyst said.
Can Ethereum Get to $10k Before 2024 Ends?
According to @stacy_muur, the price prediction of Ethereum getting to $10k before 2024 ends is quite ambiguous. But that doesn’t mean that it is not attainable.
“As we approach the crypto market cap peaks, it becomes increasingly challenging to drive prices higher, requiring more capital. A more mature market typically implies reduced volatility,” Stacy Muur added. Thus, the crypto community should only expect real price changes when the ETF goes live.
Conclusion
Recently, the US Securities and Exchange Commission approved exchanges to allow the listing of Ethereum Spot ETF. However, this does not mean spot ETH ETF trading is live. The applicants still have to polish the details and receive approval before the trading goes live. Nevertheless, initial steps have been taken, and it’s now inevitable. However, there are predictions of ETH getting to $10k due to the recent development. Well, analysis from different experts indicates that it will all depend on the success of the ETH ETFs.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
