ETH price approaches $4,000 amidst market uncertainty surrounding ETH ETF on the horizon
The price of Ethereum experienced a significant surge on Monday, reaching $3,900, thanks to a wave of optimistic sentiment among investors. Arthur Cheong, the founder of DeFiance Capital, believes that Ethereum has the potential to surpass the $4,000 mark even before the launch of spot Ethereum exchange-traded funds (ETFs). According to Cheong, the market is currently “underallocated,” meaning that investors have not fully capitalized on Ethereum’s potential. He referred to a poll that revealed nearly 50% of respondents have allocated only up to 25% of their portfolios to Ethereum, suggesting that there is room for further investment.
The recent approval of multiple spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) on May 23 has raised expectations among investors. They believe that traditional market participants will inject new capital into Ethereum, similar to what happened with spot Bitcoin ETFs earlier this year. These Bitcoin ETFs played a significant role in Bitcoin reaching a new all-time high of $73,750 in March.
However, despite the approval of spot Ethereum ETFs, there is still a waiting period as ETF issuers need the SEC’s approval for their registration statements, which include investor disclosures. Unlike exchange filings, there is no specific timeline for the SEC to approve these statements, creating uncertainty about the launch date for trading.
While a Reuters source suggests that the trading approval process could take days or weeks, there are no specific details provided. Former SEC Chairman Jay Clayton, in an interview with CNBC, expressed his belief that the start of spot ETH ETF trading is inevitable but acknowledged that there are still unresolved issues. As of now, Ethereum is currently trading at $3,910 according to data from CoinGecko.
Read more: SEC greenlights spot Ether ETFs, but Ether price shows little movement.
