As the much-anticipated launch of the first Ethereum spot ETF in the United States approaches, experts are predicting a significant raise in the price of the second-largest cryptocurrency on the market.
Ethereum ETFs on the Horizon
According to a recent Reuters report reportThe U.S. Securities and Exchange Commission (SEC) may approve Ethereum-based ETFs as early as July 4 as discussions between asset managers and regulators enter their final phase.
Industry executives and other participants, who asked not to be identified because the talks were confidential, said the process of amending the offer documents has progressed and is resolving only “minor” issues, with approval “likely to occur in no more than a week or two.”
The launch of Bitcoin ETFs in the US in January was a major success, attracting about $8 billion in assets, according to Morningstar Direct data. At the end of June, assets of these nine novel products reached almost $38 billion, although assets of the Grayscale Bitcoin Trust – which simultaneously converted its $27 billion BTC trust into an ETF – dropped to $17.8 billion.
However, experts believe that the introduction of novel Ethereum spot ETFs may not be as impressive as Bitcoin ETF debutJames Butterfill, head of research at Coinshares, noted that “Ethereum is not the same size in terms of market cap, nor does it have the same volumes” as BTC.
Given the differences in market size and nature of the two cryptocurrencies, says Bryan Armour, ETF analyst at Morningstar inflows may be much more subdued following the launch of Ethereum ETFs.
“In the case of Bitcoin, demand has been pent up for a decade, and investor interest has been beyond expectations,” Armor said. “It just won’t generate the same excitement.” But not everyone shares the same cautious approach.
ETH Eyes Potential Rally Towards $7,500
Quinn Thompson, Founder and CIO of Lekker Capital, recently he stated that the market is in the midst of “one of the most obvious and attractive cryptocurrency buying opportunities in recent years.”
Thompson further stated that in the past, being bullish was “cool,” but now it seems like “Twitter has become a contest to see who can get the most negative reception to the ETH ETF.” Thompson further noted:
Personally, I think ETH will hit $7,000 and BTC will make its first attempt at $100,000 before the November elections.
The Glassnode co-founders also shared a file bullish price analysis for Ether, stating that if investors look at Ether’s history, similar patterns are developing as in the early stages of the 2021 bull market.
They believe the current structure sees a target of around $7,500 as the eventual high for Ether, which reflects the Fibonacci extension seen in 2021 and suggests a powerful rally in Ether “soon!”
While there is still caution about the possibility of further price declines, experts say such a scenario would require a novel external event. Generally speaking, market sentiment leans toward Ethereum reaching $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 corrections seen over the weekend and early in the week.
Featured image from DALL-E, chart from TradingView.com
