ETH Price Approaches $4K as Market Uncertainty Surrounding ETH ETF Looms

On Monday, the price of Ethereum rose to $3,900, driven by a wave of bullish sentiment among investors.

Ethereum (ETH) is on track to surpass the $4,000 mark even before the launch of spot Ethereum exchange-traded funds (ETFs), as the market appears to be highly “underallocated,” according to DeFiance Capital founder Arthur Cheong.

In a post on social media platform X on May 26, Cheong projected that Ethereum, the second-largest cryptocurrency by market cap, could rise to $4,500 before the ETF’s trading launch. To back up his claim, Cheong cited research indicating that nearly 50% of respondents only allocated up to 25% of their portfolios to Ethereum, suggesting that the market may be underestimating its potential.

The US Securities and Exchange Commission (SEC) approved several spot Ethereum ETFs on May 23, after a series of delays. This decision has raised investor expectations that traditional market participants will inject new capital into Ethereum, mirroring the surge seen with spot Bitcoin ETFs that helped BTC set a new all-time high in March at $73,750.

However, ETF issuers still require SEC approval for their registration statements, which detail disclosures to investors. Contrary to exchange filings, there is no set timeline for the SEC to approve these statements, creating uncertainty about the trading launch date.

Although a Reuters source familiar with the matter indicated The trade approval process can take days or weeks without providing specific details. Former SEC Chairman Jay Clayton, in a interview with CNBC, stated that the start of spot ETH ETF trading is a question of when, not if, describing it as “inevitable,” but acknowledged that there are still some unresolved issues. At press time, Ethereum was trading at $3,910, according to data from CoinGecko.

Source