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The approval of US spot Ethereum exchange-traded funds (ETFs) may improve Ethereum’s market valuation. However, even when these ETFs are rejected, it might merely be a bump within the street reasonably than a roadblock, steered Jupiter Zheng, Head of Research at HashKey Capital.
“If the ETF is denied, it will not be that bearish, as the market is not pricing in it yet, and we still have Bitcoin ETFs as the entrance for traditional funds,” Zheng advised Cointelegraph earlier this month.
Zheng additionally expressed optimism in regards to the potential bullish impact of an authorized ETF, particularly one that features staking, which may set off a wave of quick liquidations and additional drive up Ethereum’s value.
The Securities and Exchange Commission (SEC) is anticipated to make a resolution on spot Ethereum ETFs throughout the subsequent month. Unlike the scenario with spot Bitcoin ETFs, the place progress stories have been ample, the present environment surrounding Ethereum ETFs is much less optimistic.
Bloomberg ETF analyst Eric Balchunas has lowered the chance of approval to 35%. Similarly, analysts from Barron and JPMorgan stay skeptical as a result of SEC’s lack of engagement.
VanEck, one of the spot Ethereum fund issuers, stated in a current interview with CNBC that the SEC’s reply could possibly be an outright rejection.
Odds are low, however spot Ethereum ETF approval could not be the one supply of momentum within the markets throughout this era. Prominent crypto investor Jelle believes a bullish interval for Ethereum is but to return.
According to him, there’s a comparable value sample in Ether’s chart main as much as the current Bitcoin halving on April 20, 2024, in comparison with the one earlier than the halving in May 2020.
The final #Bitcoin halving was $ETH‘s signal to start out working exhausting.
Is this time completely different? I do not assume so. pic.twitter.com/fGIiGYufe0
— Jelle (@CryptoJelleNL) April 4, 2024
In 2020, Ether’s value was round $210 earlier than the halving after which rose to $433 by August 14, marking a 106% enhance in line with CoinMarketCap’s knowledge. Jelle sees this historic sample as a potential indicator for one more value enhance for ETH following the current halving.
While the destiny of spot Ethereum ETFs stays speculative within the US, in Hong Kong, such choices are able to debut buying and selling.
Earlier this month, the Hong Kong securities watchdog greenlit spot Bitcoin and Ethereum ETF purposes from 4 asset managers, together with HashKey Capital, Bosera Capital, Harvest Global, and China Asset Management.
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