The launch of the first spot Ethereum ETFs in the United States is eagerly awaited, with experts predicting a substantial price appreciation for the second-largest cryptocurrency in the market. The US Securities and Exchange Commission (SEC) is expected to approve Ethereum ETFs by July 4, as discussions between asset managers and regulators reach the final stages. Industry insiders, speaking on condition of anonymity due to the sensitive nature of the negotiations, have disclosed that the process of amending the offering documents is nearly complete, with only minor issues remaining to be resolved. Approval is anticipated within the next week or two.
The launch of Bitcoin-based ETFs in the US earlier this year was met with resounding success, attracting around $8 billion in assets by late June. Despite this, experts believe that the introduction of spot Ethereum ETFs may not generate as much excitement as the debut of Bitcoin ETFs. James Butterfill, head of research at Coinshares, pointed out that Ethereum lacks the same market cap and trading volumes as Bitcoin, leading to potentially muted inflows when the Ethereum ETFs are launched. Bryan Armour, an ETF analyst at Morningstar, echoed this sentiment, stating that the widespread investor interest in Bitcoin is unlikely to be replicated with Ethereum.
While some market participants are adopting a cautious approach towards the potential price appreciation of Ethereum, others are more optimistic. Quinn Thompson, the founder and CIO of Lekker Capital, believes that the current market presents a compelling opportunity for crypto investors. Thompson emphasized the bullish case for Ethereum, predicting a price target of $7,000 and a significant rally in Bitcoin as well. The co-founders of Glassnode also shared a positive price analysis for Ether, drawing parallels between current market conditions and the early stages of the 2021 bull run. They anticipate a final high for Ether around $7,500, suggesting a bullish trend in the near future.
Despite lingering concerns about potential price declines, experts argue that any significant downturn would require a new external event to occur. Overall, market sentiment is leaning towards Ethereum reaching $7,000 and Bitcoin making its first attempt at $100,000 in the near future. While some observers remain cautious, others are optimistic about the price appreciation potential of both cryptocurrencies in the coming months.
The imminent launch of Ethereum ETFs in the US has sparked a debate among market participants about the potential impact on prices. While some experts remain cautious due to Ethereum’s market size and trading volumes, others are more optimistic about the price appreciation prospects for the second-largest cryptocurrency. As the approval of Ethereum ETFs draws closer, all eyes will be on the market reaction and whether it aligns with the predictions made by industry insiders and analysts.
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