ETH Price Approaches $4,000 as Market Uncertainty Around ETH ETF Looms

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

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

In a post published on social media platform AND F. To support his statement, Cheong cited a survey indicating that almost 50% of respondents have only allocated up to 25% of their wallets to Ethereum, suggesting that the market may be underestimating its potential.

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

However, ETF issuers still require SEC approval for their registration statements, which detail the information provided to investors. Unlike exchange filings, there is no set deadline for the SEC to approve these filings, creating uncertainty about when trading will begin.

While a Reuters source close to the matter noted the transaction approval process can take days or even weeks without providing specific details. Former SEC Chairman Jay Clayton in a interview with CNBC, said the start of spot trading of ETH ETFs is a question of when rather than if, describing it as “inevitable” but acknowledged there are still unresolved issues. At press time, Ethereum is trading at $3,910, according to CoinGecko data.

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