On May 23, the long-awaited news arrived for investors and the cryptocurrency community: the SEC gave the green light to spot ETFs for ether (ETH), the native cryptocurrency of the Ethereum network.
In the midst of the euphoria that the information unleashed, it is important to clarify that there is still some time before these instruments are listed on the stock market.
This Thursday the US agency granted regulatory approval to 8 ETFs proposed by VanEck, Ark21Shares, Hashdex, Grayscale, Invesco Galaxy, BlackRock and Fidelity. This was done simultaneously supposedly so as not to favor any of the companies. The investment funds may be traded on the Cboe, Nasdaq and NYSE stock exchanges .
In this context, the price of Ethereum 's native cryptocurrency registered a small decrease. As seen in the graph, after approval, its price rose to $3,900. However, it then returned to the area between $3,600 and $3,700.
These movements in the price of ETH are due to the fact that the SEC approved forms 19b-4 but they have not yet been authorized for release. For this to happen, it is essential that the same organization gives the green light for the S-1 application, a document in which the issuing companies detail their risk profile, finances and the values that they intend to offer these financial instruments.
This is how Bloomberg analyst James Seyffart detailed it through his X account:
For his part, another Bloomberg analyst, Eric Balchunas, went one step further and ventured: “Mid-June is certainly possible. ” Although in that same publication he clarified: “Just a guess. We will see".
In turn, he shared an image of the VanEck company's amended S-1 filing with the SEC. “He doesn't waste time,” she said. The rest of the applicants are expected to do the same in the coming hours.
Meanwhile, Gabriel Shapiro, the general counsel of Delphi Labs, warned that the SEC's approval was made by its Division of Operations and Markets which “means that a commissioner can challenge them in the next 10 days (it also means that they are trying to hide the vote because it is political). In addition, he mentioned the possibility that “ the S-1s will not be approved soon , but we will see.”
This analysis sparked a discussion on social media but was ultimately dismissed by Bloomberg experts. “The S-1s will be approved, don't be stupid,” Balchunas told him.
What can happen to the price of ETH if its ETFs are traded on the stock exchange?
Market projections for the digital currency created by Vitalik Buterin were mostly positive before its ETFs were approved by the SEC .
In this regard, a report from the Coinbase exchange assures that ETH “has bullish potential for the coming months.”
Furthermore, he adds that ETH's long-term position “remains strong and has key advantages” because its network differs significantly from other cryptocurrencies.
Continuing with these market speculations, analyst Miles Deutscher recalled what happened to the price of BTC, which rose 75% in 63 days after its ETFs were approved in the United States in January 2024, as the graph shows. “If ETH follows the same trend (if approved), this would take it to USD 6,446 by July 23,” he emphasized.
Along these lines, the head of currency and digital asset research at Standard Chartered bank, Geoff Kendrick, revealed days ago that they envision a price of $8,000 of ETH by the end of 2024.
