The Recent Bitcoin ETF Approval
In light of the landmark approval of 11 spot Bitcoin ETFs on January 10, 2024, the cryptocurrency landscape is buzzing with anticipation for the possible approval of Ethereum’s spot ETFs later this year. Analysts are expressing optimism about Ethereum’s prospects, with Bloomberg ETF analyst Eric Balchunas estimating a 70% likelihood of approval by May. This delves into the implications of Bitcoin ETF approval on Ethereum, the current sentiments among analysts, and the contenders seeking regulatory approval for Ethereum spot ETFs.
Analyst Insights and Market Sentiments
The green light has been given to Bitcoin ETFs paving the pathway for new opportunities and innovations in the cryptocurrency market. Eric Balchunas, senior ETF analyst at Bloomberg, asserts, “The Ether spot is tied to the hip of Bitcoin spot for sure. It’s gonna go wherever it goes. It’s essentially on a 15-foot rope following it.” Eric Balchunas, previously cautious about approving spot Bitcoin ETFs, now holds an optimistic outlook for Ethereum. Additionally, digital asset lawyer Joe Carlasare envisions Ethereum spot ETFs gaining approval this year.
New Deadline Fuels Speculation
With multiple Ethereum spot ETF applications, including those from VanEck, Ark 21Shares, and Hashdex, requiring SEC decisions by the end of May, the industry is on edge awaiting outcomes. May 23, 2024, marks the final deadline for VanEck’s spot Ethereum ETF decision, which has heightened anticipation. Ether experienced a 3% price surge post-approvals, surpassing $2500 for the first time since May 2022, reflecting a 7% increase in the past 24 hours.
SEC Decision Deadlines
Several prominent financial institutions and asset management firms have submitted applications for Ethereum spot ETFs. The SEC must make decisions on these applications by specific deadlines.
Hot Take
The approval of spot Bitcoin ETFs has infused optimism into the cryptocurrency market, paving the way for Ethereum spot ETFs. Analysts and industry experts foresee favorable outcomes, with Eric Balchunas estimating a 70% chance of approval by May.
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