SCRYPT CEO Norman Wooding believes that the approval of spot Ethereum (ETH) ETFs by the SEC could lead to higher prices for Ethereum. Wooding predicts that if spot ETH ETFs are approved, ETH prices could surpass $4,000, following a similar pattern seen with spot Bitcoin (BTC) funds. The approval of spot ETH ETFs could help eliminate concerns surrounding Ethereum and increase market demand, according to Wooding.
Wooding also suggests that if spot ETH ETFs capture 10-20% of Bitcoin ETF flows, Ether could potentially retest its $4,800 peak. This approval could open up new opportunities for a previously untapped audience, leading to increased demand and a positive price trajectory for Ethereum.
Exclusive Grayscale spot Bitcoin ETFs have already seen significant success, with over $35 billion in assets under management within six months of trading. Wooding’s estimates align with a report from the Gemini crypto exchange, projecting $5 billion in net inflows for spot ETH funds over the same six-month period.
While some skeptics question the need for an institutional wrapper tracking spot Ether prices, Wooding remains optimistic about the potential benefits for ETH proponents. He believes that reduced liquidity and dormant ETH from ETFs could incentivize more direct Ether staking, resulting in higher on-chain yield as spot ETFs capture a significant supply.
As for the timeline for spot Ethereum ETF approval, experts anticipate final greenlights to arrive before the end of Q3 2024. Despite concerns that the SEC may reject issuers, Wooding is confident that spot ETH ETFs will be approved this month. He emphasizes that a denial could impact the SEC’s credibility but also lead to further regulatory discussions and improved future proposals.
In the event of a denial, Ether prices may experience a temporary decline, but Wooding believes that Ethereum’s fundamental value and utility will ultimately stabilize the market as investors refocus on its technological advancements and applications.