- ETF experts believe the US SEC will continue to sporadically delay the decision on spot Ethereum ETFs until May 23 this year, which is similar to January 10 for Bitcoin’s spot ETFs.
- Speculation of the approval of spot ETH ETFs in the United States will help Ether bulls push higher against Bitcoin in the coming weeks following a successful rebound and breakout.
Ethereum (ETH), the largest web3 ecosystem with more than $30 billion in Total Value Locked (TVL) and over $69 billion in stablecoins market cap, has grown into a respectable and mature network in the past years. The recent approval of spot Bitcoin ETFs has significantly raised the chances of the US SEC approving the spot Ethereum ETFs in the near term. Consequently, Ethereum bulls have been preparing to rally above $2,500 and reach an estimated target of around $3,500 in the coming months.
Closer Look at Ethereum Spot ETF in the US a
The demand for Ethereum from institutional investors, as a fast-growing investment class, has significantly grown in the past year. With the crypto market having demonstrated robust resilience despite the 2022 drawbacks from several high-profile web3-related companies, investors’ confidence has significantly grown.
Consequently, on November 21, 2023, the Nasdaq Stock Market LLC filed with the United States Securities and Exchange Commission (SEC) to list and trade the iShares Ethereum Trust, backed by the leading asset fund manager with nearly $10 trillion in AUM.
Meanwhile, the US SEC has been exercising its constitutional allowance of 240 days to thoroughly vet the applicants. On January 24, the US SEC Commission opted to delay the first deadline of the iShares Ethereum Trust until March 10. The US SEC noted:
The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, 5 designates March 10, 2024, as the date by which the Commission shall either approve or disapprove or institute proceedings to determine whether to disapprove, the proposed rule change,
Notably, Bloomberg’s ETF analyst Eric Balchunas has predicted that the US SEC will approve all the spot Ethereum ETFs – including the VanECK and Ark 21Shares’ ETFs by May this year. Furthermore, one of the US SEC’s commissioners Hester Peirce has signaled that the approval of spot Ethereum ETFs is inevitable and will not need court battles.
Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd https://t.co/2zBBvHkrVk
— James Seyffart (@JSeyff) January 24, 2024
ETH Market Outlook and Price Action
Ethereum network has grown to a highly decentralized blockchain ecosystem supporting hundreds of web3 protocols by providing military-grade security and reliable liquidity. As of this report, the Ethereum network had a volume-to-market cap ratio of about 3.42 percent, which is higher than that of Bitcoin which stands at around 2.54 percent, thus indicating higher liquidity.
Ethereum has many layer-two scaling solutions that enable the mass adoption of its smart contracts around the world. According to on-chain data provided by tokenview, the Ethereum network has more than 79.7 million holders who have facilitated over 2.2 billion transactions.
The Ethereum network records an average of 1.2 million daily transactions, which is double that of Bitcoin’s. Meanwhile, Ethereum’s price has dropped approximately 13 percent in the past seven days to trade at (SEE CHART BELOW)
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