Ethereum ETF Approval and Bitcoin Price Prediction
Bitwise research analyst Ryan Rasmussen believes that there is a 50% chance of spot Ethereum ETFs being approved by the U.S. Securities and Exchange Commission (SEC) in May. He also predicts that Bitcoin will reach $88,000 by the end of 2024.
In an interview on Yahoo Finance, Rasmussen highlights the growing interest in ETFs from institutional investors ahead of the potential approval date. This has had an impact on Ethereum’s recent performance, as it has seen more gains compared to Bitcoin.
However, Rasmussen expresses concerns about the market’s readiness for the product, taking into account the SEC’s preferences. While spot Bitcoin ETFs faced rejections in the past until Grayscale filed a lawsuit against the SEC, Rasmussen does not believe that a lawsuit is necessary for Ethereum ETFs. Nevertheless, he sees the approval in May as a coin toss with a 50% chance of success.
Rasmussen also mentions upcoming Ethereum advancements that will drive the cryptocurrency’s expansion. He specifically highlights the March Dencun upgrade, which aims to reduce transaction costs on the Ethereum network and enhance adoption.
Matt Hougan, Bitwise’s Global Head of Research, shares a similar view to Rasmussen, predicting an almost 50% chance of approval in May. However, predictions from the Polymarket website are less optimistic, giving a 44% likelihood of Ethereum ETF approval.
Last month, JPMorgan’s Nikolaos Panigirtzoglou stated that they would not assign more than a 50% chance to Ethereum ETF approval before May. Panigirtzoglou explains that for the SEC to approve an Ethereum ETF, they would need to classify ETH as a commodity, which is unlikely within the short timeframe.
The VanEck spot Ethereum application is expected to receive a decision from the SEC on May 23, with other similar filings expected to follow suit. The decision process is expected to be similar to that of the spot Bitcoin ETF application.
Moving on to Bitcoin, while Bitwise does not have a spot Ethereum ETF application, their spot Bitcoin ETF was approved in January. Rasmussen expresses satisfaction with the product’s performance, as it has attracted over $1 billion in assets.
Rasmussen also reiterates Bitwise’s earlier predictions that Bitcoin will reach its all-time high of at least $88,000 by the end of 2024. He believes that crypto is poised to emerge from the weak market of 2022 and enter a multi-year bull cycle. Hougan is even more optimistic, expecting Bitcoin to surpass $80,000 this year.
Hot Take: Ethereum ETF Approval and Bitcoin’s Price Outlook
Bitwise research analyst Ryan Rasmussen gives insights into the potential approval of spot Ethereum ETFs and the future price of Bitcoin. With a 50% chance of approval by the SEC in May, Ethereum ETFs are attracting institutional investors’ interest. This has influenced Ethereum’s recent performance compared to Bitcoin.
However, there are concerns about market readiness and SEC preferences regarding ETF products. While past rejections for spot Bitcoin ETFs required a lawsuit for approval, Rasmussen believes that Ethereum ETFs may not face the same situation. Still, he sees the approval in May as uncertain with a 50% chance.
Rasmussen also highlights upcoming advancements in Ethereum, such as the March Dencun upgrade, which aims to reduce transaction costs and drive adoption.
Other experts share similar views on the likelihood of Ethereum ETF approval. Matt Hougan sees an almost 50% chance, while predictions from the Polymarket website are less optimistic at 44%.
JPMorgan’s Nikolaos Panigirtzoglou explains that classifying ETH as a commodity would be necessary for the SEC to approve an Ethereum ETF. However, this is unlikely within the short timeframe.
The VanEck spot Ethereum application is expected to receive a decision on May 23, setting the stage for other similar filings. The decision process is anticipated to mirror that of the spot Bitcoin ETF application.
Regarding Bitcoin, Bitwise’s spot Bitcoin ETF has performed well, attracting over $1 billion in assets. Rasmussen predicts that Bitcoin will reach its all-time high of at least $88,000 by the end of 2024. He believes that crypto is entering a multi-year bull cycle after a weak market in 2022. Hougan is even more bullish, expecting Bitcoin to surpass $80,000 this year.
In conclusion, the approval of Ethereum ETFs and the future price of Bitcoin are closely watched by the crypto community. With a 50% chance of approval in May, Ethereum ETFs are gaining interest from institutional investors. Meanwhile, experts predict that Bitcoin will reach new highs in the coming years, with Rasmussen projecting $88,000 by 2024. Exciting times lie ahead for both Ethereum and Bitcoin enthusiasts.
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