Rally or dud: What to expect if spot Ether ETFs are approved - bntyo.com

Market observers are conflicted over what could happen following SEC approval of a spot Ether ETF.

The United States Securities and Exchange Commission’s (SEC) first deadline for a spot Ether ETF falls on May 23.

Its approval would be a significant event not only for investors,

but it could also represent an important change in the current status quo of U.S. crypto regulation.Many in the crypto community didn’t expect the SEC to approve a spot Ether
ETH

tickers down
$3,762

ETF.

But reports about the SEC requiring updates from applicants and the amendment of filings from U.S.

asset managers signal that a spot Ether ETF may be approved after all.

Sebastian Heine, chief risk and compliance officer of institutional staking partner Northstake,

told Cointelegraph how a spot Ether ETF would be “a game-changer for the entire crypto ecosystem and traditional finance sectors.”

ETF analysts Eric Balchunas and James Seyffart believe that the SEC may be turning

180 degrees on an Ether ETF despite it becoming an “increasingly political issue.”

What are the expected effects if the spot Ether ETF gets approved?

Will Ether ETFs increase ETH’s price?
There is widespread belief among crypto investors that the price of ETH will surge thanks to

spot Ether ETFs, as it will open the doors to a new inflow of money from investors in traditional markets. Heine said:

“An ETH ETF approval would not only be bullish for Ethereum but for the entire crypto market, especially in the U.S., which holds the largest capital pool globally.”

The price of Ether surging over 20% the day before the ETF deadline “demonstrates the substantial amount of money waiting on the sidelines, ready to jump in at any significant catalyst,” noted Heine.

Solo Ceesay, former securitization investment banker at Citi Bank,

told Cointelegraph that he believes the sudden surge of ETH “underestimates” the potential inflow

Ethereum could receive, as big money still hasn’t arrived in the ETH market.

Ceesay explained that the potential is significant, as an “ETF allows the deep pockets that were prohibited from investing in the asset to now enter the game.”

But there could be a possible pullback. Basel Ismail, CEO of investment analytics company Blockcircle,

told Cointelegraph that “the ETH ETF being approved isn’t properly priced in at all yet.”

By mohmed

Leave a Reply

Your email address will not be published. Required fields are marked *