The price of Ethereum may rise to $4500 even before the launch of spot ETFs based on the cryptocurrency, according to Arthur Cheong, founder and CEO of DeFiance Capital.
4.5k before spot ETF go live for trading imo.
— Arthur (@Arthur_0x) May 26, 2024
On May 23, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum. Ahead of the approval, the price of Ether surged to $3900, but then corrected to around $3650.
At the time of writing, the coin’s price had returned to levels above $3900 (CoinGecko).
Ethereum ETFs will only be able to trade after the SEC signs off on S-1 form statements. According to Bloomberg analyst James Seyffart, this could take “weeks or months.”
A quick note, @EricBalchunas and increased odds to 75% for spot #Ethereum ETF approvals. But that’s for the 19b-4 May 23rd deadline (@vaneck_us‘s deadline) We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF h/t @NateGeraci
— James Seyffart (@JSeyff) May 20, 2024
JPMorgan described the regulator’s approval of spot Ethereum ETFs as a political decision ahead of the U.S. presidential elections.
MicroStrategy founder Michael Saylor saw advantages for Bitcoin in the launch of ETH exchange-traded funds.
Earlier, Jeffrey Kendrick, head of research at Standard Chartered, suggested a new phase for crypto ETFs in 2025. In his view, the next in line are SOL and XRP.
Matrixport co-founder Daniel Yan also named Solana as a new contender for the launch of exchange-traded funds.