Believe that the SEC has fully approved Ethereum ETFs? Think again. While the SEC has given the green light to Form 19b-4 for eight Ethereum ETF issuers, including big names like BlackRock and Fidelity, full approval is still pending. This news has stirred both excitement and caution in the crypto community, with many wondering when Ethereum (ETH) will reach new heights.
Key Factors for Approval:
The recent approval from the SEC only covers Form 19b-4, not the more comprehensive S-1 registration statements. This means progress is being made, but the final approval everyone is waiting for has not yet been granted. Investors are hopeful but aware that important approvals are still in the works.
Navigating Uncertainty:
Unlike Bitcoin Spot ETFs, which took a different route to approval, the Ethereum ETF received the go-ahead through the Division of Trading and Markets with “delegated authority.” However, potential challenges could still arise within a 10-day window from commissioners, adding uncertainty to the process. Additionally, political obstacles could further delay final approval.
Keeping Expectations in Check:
While the approval to list Ethereum ETFs is a significant milestone, it does not immediately translate to buying opportunities. This distinction has prevented a major price surge thus far, as institutional investors wait for the green light to start trading ETH. Once trading is allowed, a wave of institutional investment is expected to spark a bullish trend.
Price Predictions:
Ethereum has overcome various obstacles on the technical front, fueled by low network fees that could encourage more activity. However, surpassing the $4,000 valuation mark may take some time. History shows that ETF approvals do not always lead to an instant surge; Bitcoin experienced a brief dip after spot Bitcoin ETFs were approved earlier this year before bouncing back.
Balancing Optimism with Reality:
Despite some experts believing that the ETF approval is not yet fully factored into the market, caution remains prevalent. While Ethereum has shown resilience recently, the full impact of the ETF approval may take time to materialize. Recent market movements, such as a slight dip in Bitcoin’s price followed by a rally in cryptocurrencies like Pepe after the news, demonstrate the complexities at play.
What’s Next?
VanEck has submitted a revised S-1 with the SEC, with analysts predicting approval in the coming weeks to months. Crypto analyst Zach Rynes believes that once ETF inflows begin, Ether prices will experience a significant boost.
The SEC’s action on Ethereum ETFs is a positive development, but will it be enough to drive a major price surge? Share your thoughts.