Excitement is building over the potential approval of a spot Ethereum Exchange-Traded Fund (ETF), with the crypto community closely watching the impending decision from the US Securities and Exchange Commission (SEC). Opinions from experts have begun to surface.
Is there a delay on the horizon for Ethereum ETFs?
A user on X (formerly known as Twitter) has voiced concerns regarding Bloomberg analysts’ forecast, which suggests a mere 25% likelihood of the SEC green-lighting Ethereum ETFs under the current conditions. The user emphasized the analysts’ reputation for accuracy over any personal inclination towards Ethereum or the broader cryptocurrency market.
Eric Balchunas, Bloomberg’s Senior ETF Analyst, pointed out that remarks from the US SEC could significantly sway the odds for an Ethereum ETF’s approval, potentially increasing the chances by two or threefold. Nonetheless, he also remarked on the difficulties of receiving prompt feedback from the commission, especially with the ETF approval deadline approaching.
Another discussion revolves around whether BlackRock’s engagement and investment in Ether-linked ETFs could influence the SEC’s verdict.
Balchunas explained that BlackRock’s application and involvement with Ethereum don’t directly affect the SEC’s decision-making process under rule 19b-4. He acknowledged that while there are many reasons an ETH ETF might get the nod, BlackRock’s participation is unlikely to alter the SEC’s position.
Market Update:
Following the significant Dencun upgrade, Ethereum has experienced a decline, with its price falling nearly 17% over the past week. From surpassing the $4,000 mark, it has dipped to around $3,200.
Currently, Ethereum’s average trading price stands at $3,298, with a 24-hour trading volume that has slightly increased to $32 billion. The cryptocurrency maintains a market capitalization of $395 billion as the second-largest digital asset.
Meanwhile, the cryptocurrency community is now more focused on Bitcoin prices and the diminishing interest in US spot Bitcoin ETFs. Factors contributing to this shift include withdrawals from the Grayscale Bitcoin Trust and a downturn in BTC ETF subscriptions from leading financial institutions.
Over the past week, Bitcoin has seen its value decrease by more than 13%, even after reaching a new all-time high of over $73,500. Despite this, Bitcoin’s price has risen by 20% in the last 30 days.
Bitcoin’s current average trading price is $63,498, with its 24-hour trading volume decreasing by 15% to $60 billion.
Not a financial advise.