Analysts Predict Imminent Ethereum Bull Run Despite Short-Term Struggles

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As a researcher with experience in the cryptocurrency market, I believe that the approval of spot Ethereum ETFs is a highly positive sign for ETH‘s long-term growth, despite potential short-term struggles. The removal of regulatory uncertainty around ETH and its status as an asset class is significant and could lead to a bull run in the price of ETH.

As a crypto investor, I find it encouraging when reputable sources like Kaiko Research suggest that the approval of spot Ethereum Exchange Traded Funds (ETFs) could be a significant boon for Ethereum’s future growth, even if there might be some temporary challenges along the way.

As an on-chain analyst, I can assert that the Ethereum community’s successful approval of the Ethereum Improvement Proposal (EIP) 1559 has significantly reduced regulatory uncertainties surrounding Ethereum and its classification as a valuable asset class.

ETH Bull Run Imminent 

Last week brought exciting news for Ethereum investors like myself as the US Securities and Exchange Commission (SEC) gave its green light to spot Ethereum Exchange Traded Funds (ETFs). This decision came after major exchanges, including Cboe, NYSE, and Nasdaq, received approval for their 19b-4 filings. The next step involves the SEC’s review of S-1 forms from various ETF issuers such as VanEck, BlackRock, and Fidelity. Once these forms are approved, Ethereum ETF trading can commence. As per Will Cai, the head of indices at Kaiko, this approval implies that Ethereum without staking is considered a commodity by the SEC.

As a crypto investor, I’m excited about the recent SEC approvals, which have implicitly acknowledged that Ethereum (without staking) is considered a commodity rather than a security. This goes beyond just granting access to Ethereum but has far-reaching and positive implications for how all similar tokens will be regulated in the US regarding trading, custody, transfer, and more. The approvals are likely to pave the way for a clearer regulatory landscape for digital assets in the country.

Some Selling Pressure Expected 

Kaiko noted that following the approval of spot Bitcoin ETFs by the SEC, Ethereum could potentially experience a bull run based on historical trends. However, the firm expressed caution, anticipating some downward pressure on Ethereum’s price due to projected outflows from Ethereum investment products like Grayscale’s Ethereum Trust. This situation echoes past events with Bitcoin ETF approvals, where investors in Grayscale’s GBTC quickly withdrew their funds, causing a temporary decrease in Bitcoin’s value.

After the launch of Ethereum-based Exchange Traded Funds (ETFs), it’s logical to anticipate selling pressure on Ethereum due to potential outflows or redemptions from Grayscale’s Ethereum Trust (ETHE). Over the past three months, ETHE has traded at a discount of between 6% and 26% compared to Ethereum. However, even if initial inflows are underwhelming, the approval of these ETFs carries significant implications for Ethereum as an asset. It reduces regulatory uncertainty that has negatively impacted Ethereum’s performance over the last year.

As a crypto investor, I’m excited about the recent development regarding Ethereum ETFs. According to Greg Magadini from Amberdata, we’re currently experiencing a “bull run” due to this news. However, it’s important to note that the exact timeline for the trading of these ETFs is still uncertain. Nevertheless, JPMorgan, a leading financial institution in the US, has expressed confidence that spot Ethereum ETFs will be available before November.

Sudden Approval

As a researcher studying the world of cryptocurrency and exchange-traded funds (ETFs), I’ve come across an intriguing development: The anticipated launch of Spot Ethereum ETFs. These financial instruments will offer investors easy access to Ethereum (ETH) through trading shares on traditional stock exchanges.

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2024-05-28 12:06