Potential ETH ETF Approval Shakes Crypto Industry, Skyrockets ETH Price
The increased likelihood of an ETH ETF approval has significantly impacted the crypto industry, causing ETH prices to soar to new heights within hours. Bloomberg analysts Eric Balchunas and James Seyffart noted that the U.S. Securities and Exchange Commission (SEC) might be asking ETH ETF applicants to amend their 19b-4 filings, raising approval chances from 25% to 75%.
Speculations and Market Reactions
Speculation suggests that the ETH ETF might be approved by this weekend, potentially benefiting the entire crypto ecosystem. Crypto assets are expected to directly benefit from the pre-approval sentiment.
Impact on Key Crypto Assets
ETH:
– The approval news has driven ETH prices up by more than 20% in the past 24 hours, currently trading at $3,770 according to Coinmarketcap, a 22% increase.
– This surge illustrates the potential impact of the actual approval on ETH prices, which could rise even further and potentially reach a new all-time high.
– The approval would reaffirm ETH’s position as the second-largest crypto asset.
BTC:
– While BTC had its own surge during the anticipation of the spot BTC ETF, it has risen more than 7% in the past day following the ETH ETF news.
– BTC is now trading at $71,200, marking an all-time high.
– The ETH ETF news has also positively influenced the inflow into the spot BTC ETF.
PEPE:
– PEPE, an Ethereum-based memecoin, has also benefitted, recently reaching an all-time high.
– The memecoin’s price surge is part of the broader memecoin market dynamics and Ethereum’s increasing prominence.
Broader Impact on Blockchain Adoption
The approval of a spot ETH ETF could significantly boost blockchain adoption and Ethereum’s credibility. Traditional finance players would gain direct exposure to ETH via ETFs, introducing them to smart contracts and Ethereum’s infrastructure. This could solidify Ethereum’s position as a foundational blockchain for various applications, including asset tokenization, which is already being explored by market leaders like BlackRock.
Can ETH Surpass BTC?
The debate over whether ETH could surpass BTC continues. While Bitcoin remains the leading crypto asset with a market cap of $1.4 trillion, Ethereum’s increasing adoption could, hypothetically, allow it to catch up. However, ETH would need to triple its current market cap to match Bitcoin’s.
If approved, spot Ethereum ETFs will offer the traditional finance sector regulated and accessible exposure to ETH, potentially bringing significant liquidity to the crypto market. This would spotlight Ethereum amid the ongoing bull run, possibly helping it to recover and exceed its previous price levels. The final decision lies with the SEC, with approval chances having recently increased to 75%.
Source: cryptotimes.io
