optimism Is Diminishing Around Spot Ethereum ETF Approval, Can ETH Price Rise Continue?
Last week, Ethereum attempted to break through the $4,000 levels, but at that point it encountered selling pressure and retreated partially. At the time of writing, the Ethereum (ETH) price is trading at $3,866, down 2%, and its market cap is $464 billion. All eyes are currently on the Etheruem Dencun upgrade, which is scheduled to go live on the mainnet before this week. However, optimism regarding the spot Ethereum ETF appears to be waning over time.
Is Spot Ethereum ETF Approval Improbable?
Fox Business reporter Eleanor Terret shared her observations, noting that optimism about spot Ethereum ETFs being approved by the U.S. Securities and Exchange Commission before May 23 is waning.
Discussions with knowledgeable individuals indicate that recent meetings have been largely one-sided, with issuers and custodians actively pushing SEC staff to expedite the process. However, it appears that SEC staff were not as responsive or engaged in meaningful discussions compared to the spot Bitcoin ETF filings.
Terret also added that he perceives that SEC chairman Gary Gensler has already met industry demands with the approval of spot Bitcoin ETFs. Additionally, prominent anti-crypto politicians such as Senator Elizabeth Warren are reportedly unhappy with the SEC’s decision to greenlight Bitcoin ETFs and are actively opposing the possibility of Ethereum ETF approval.
resources aforementioned: “It’s very difficult for staff to gauge this and we’re not sure if anyone really knows what’s going on in their minds. But if they’re going to have a chance, they’re going to have to start working soon.”
No Strong Correlation Between ETH spot and Futures ETF
Eric Balchunas, a Bloomberg analyst, noted that US SEC staff did not provide any feedback to the issuer of the Ethereum spot ETF application, unlike their involvement during the Bitcoin spot ETF evaluation.
This lack of participation is viewed negatively, especially given the notable correlation between the Bitcoin spot and future ETF approvals. However, the correlation between Ethereum spot and future ETFs is not that strong, indicating a potentially less optimistic outlook for Ethereum ETF approval.
Although there has been some decline in the Ethereum price, analysts are optimistic that the ETH rise will continue further. As reported, analysts are predicting a minimum additional gain of 25% in Ethereum to $5,000. However, it will be interesting to see how the bulls maintain the momentum after the Dencun Upgrade.
✓ Share:
Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Optimism #Diminishing #Spot #Ethereum #ETF #Approval #ETH #Price #Rise #Continue
