Market analysts say that if the US SEC approves spot Ethereum ETF this week, ETH price can rally 75% from the current levels by July 2024.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Applicants of the spot Ethereum ETF are making quick changes to their submissions after the US SEC requested 19b-4 filings from the issuers on Monday. As per the latest reports, Fidelity has submitted an updated S1-filing to the SEC clearly noting that its Ethereum (ETH) in holdings won’t be staked further.
The S-1 form serves as the initial registration document necessary for newly offered securities intended for the public. It furnishes the SEC and potential investors with comprehensive insights into the company’s business operations, financial status, and management structure.
This updated filing comes as uncertainty looms over Ethereum’s ‘security’ status in the market. Galaxy researcher Alex Thorn addresses some of the speculations about SEC’s stand with spot Ethereum ETF.
He added that if at all, the US SEC is looking forward to the approval, it would differentiate between Ethereum (ETH) and staked Ethereum (stETH) or “staking as a service ETH” as securities. This approach will help the SEC stay consistent with its ongoing court cases and investigations thereby potentially leading to the approval of spot Ethereum ETF. This makes it clear that the SEC won’t approve the staking of ETH held by these ETF issuers.
Looks like you got a final answer as to whether SEC will allow staking: No. As this is first amendment of any document to roll in post-SEC 180 and their comments to issuers yesterday. https://t.co/HUUYQHtxsh
— Eric Balchunas (@EricBalchunas) May 21, 2024
Amid these fresh developments, Ethereum (ETH) price has extended its rally to 25% in the last 24 hours and is currently trading at $3,810 with a market cap of $456 billion.
Miles Deutscher, a prominent crypto analyst, has made a bold prediction drawing a parallel with Bitcoin (BTC) performance after the approval of its spot ETF, Deutscher suggests that if Ethereum follows a similar trajectory, it could rally by as much as 75% in 63 days. Thus, if the SEC gives a nod to the spot Ethereum ETF, it could propel the cryptocurrency’s price to $6,446 by July 23.
Banking giant Standard Chartered stated that the approval of the spot Ethereum ETF could happen this week itself. The SEC will announce its verdicts on VanEck’s Ethereum ETF application on May 23 and rk Invest/21Shares’ on May 24.
Interestingly, the banking giant also expects inflows to the tune of $15 billion and $45 billion within the first twelve months of launch.
“After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval. In US dollar terms, that equates to roughly $15 billion to $45 billion,” Standard Chartered Bank Head of FX Research and Digital Assets Research Geoff Kendrick added.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
