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Approval of Ether ETFs could lead to a 60% price increase, cryptocurrency firm says
Crypto asset trading firm QCP Capital has expected a potential 60% increase in the price of Ether, predicting that it could rise by around $6,000 if the Securities and Exchange Commission (SEC) approves Ethereum spot exchange traded funds (ETFs). The cryptocurrency market is volatile right now and all eyes are on the regulator will announce its decision this week.
Ethereum ETF will be a speculative bet, strategist says
The financial guarantor will decide whether to approve or reject Van Eck’s spot application for the Ethereum ETF on Thursday and the Ark 21Shares Ethereum ETF application on Friday.
The approval of the Ether spot ETF application would be a historic moment for the cryptocurrency industry, as financial giants have been waiting for it for years. The approval of Spot Bitcoin ETF boosted the cryptocurrency industry and market earlier this year, with Bitcoin up more than 50% in less than a month.
In the meantime, the Depository Trust and Clearing Corporation (DTCC) has listed the Vaneck ETF on its website, indicating that approval and trading could begin as soon as possible. The DTCC provides clearance, settlement, custody and post-trade information services.
BlackRock, Bitwise, Grayscale, Van Eck, Ark 21Shares, Fidelity, Franklin and Invesco have have amended their 19b-4 documents with the SEC to remove staking provisions. This way, these financial companies hope to get approval more easily. 19b-4 filings are documents that national exchanges such as the NASDAQ or the New York Stock Exchange (NYSE) file with the SEC to request approval for listing new products on their trading platforms.
Experts are optimistic that the SEC will make a favorable decision regarding Ether ETFs. Earlier this week, Bloomberg Intelligence ETF Analysts Eric Balchunas and James Seyffart increased the odds of Ethereum ETF approval from 25% to 75%. Balchunas published on X that the SEC “might do a 180” due to mounting political pressure. Cryptocurrencies have emerged as a significant political topic in this election year, with the presidential candidate Donald Trump is carrying out several pro-cryptocurrency projects statements during the May election campaign. Furthermore, President Joe Biden is also taking a pro-cryptocurrency stance to gain support from the crypto community.
As of mid-morning Thursday, Bitcoin was trading at $68,000, a loss of nearly 2.5%, while Ether was hovering around $3,800, a gain of more than 1.9%. according to CoinMartketCap.