Ethereum
Analysts See Ethereum Rise Another 75% as ETF Approval Considered a Done Deal – DL News
- Ethereum could rise by up to 75% thanks to the one-time approval of the Ethereum ETF.
- The prediction comes as the deadline for the SEC to approve VanEck approaches.
- The skyrocketing chances of approval have also caused confusion among punters.
Ether will hit $6,600 if US regulators give the green light to Ethereum exchange-traded funds this week.
This is according to estimates by Gautam Chhugani and Mahika Sapra, analysts at research firm Bernstein.
They noted that the U.S. Securities and Exchange Commission’s approval of similar Bitcoin products in January led to a 75% surge in the following weeks.
“We expect similar price action for ETH,” Chhugani and Sapra said in a report released Tuesday.
With current prices, this would put the price of Ethereum north of $6,600. It reached its previous high of $4,878 in November 2021.
Ethereum is on a tear this week as speculation runs rampant the SEC is receptive to approving ETFs. The ether has jumped 22% over the past 24 hours, compared to a 4.5% rise for Bitcoin, according to CoinGecko data.
Bernstein’s note to clients contributed to the surge of optimism that has lifted the crypto after a turbulent few months.
On Monday, two influential Bloomberg Intelligence analysts made a splash by improving the chances of an ETH ETF being approved from 25% to 75%.
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The deadline for the SEC to approve VanEck’s Ethereum ETF application is Thursday.
The endorsement will likely be extended to several other applicants to avoid the SEC being seen as a kingmaker.
But the drama also created market confusion around the technical processes of filing for regulatory approval with the SEC.
The chances
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas said it changed its ETF forecast amid rumors that the SEC was becoming more active in its discussions with exchanges.
Hours later, news broke that scholarships had been asked to update and reclassify their applications, according to CoinDesk.
Seyffart and Balchunas said the SEC could approve Ethereum ETFs in two stages rather than rejecting the entire application, which many investors feared.
In other words, the SEC could approve an Ethereum ETF in principle, but not the actual sale of the products in the market – a distinction that market observers have interpreted as optimistic.
“I don’t think I’ve ever been so happy to be wrong,” Noelle Acheson said in Tuesday’s edition. Crypto is now a macro bulletin. “It looks like we may finally get ETH spot ETFs listed in the US.”
Confusion of the polymarket
The uproar has punters worried at Polymarket where they have placed $8 million in bets on the rejection or incoming approval of the ETFs.
But if it’s a two-step process, it could make betting more difficult.
Indeed, punters are already debating the fine print regarding when an application is actually approved by the SEC.
This isn’t the first time punters disagreement over how betting is set on Polymarché.
Crypto market players
- Bitcoin is up 4.5% to $70,360 over the past 24 hours.
- Ethereum is up 22% at $3,790.
What we read
Eric Johansson is the editor-in-chief of DL News. Do you have any advice? Email to eric@dlnews.com.