A lot of excitement and speculation surrounding the potential approval of spot Ethereum exchange-traded funds by the United States Securities and Exchange Commission. Analysts are predicting that if this approval happens, Ether could surge as high as $6,600.
The estimations come from analysts at the research firm, Bernstein, Gautam Chhugani and Mahika Sapra. They pointed out that a 75% increase in value occurred in the weeks that followed the SEC’s approval of comparable Bitcoin WTFs in January.
Ethereum surged past $6,600 on speculation of SEC approval for ETFs, with a 22% increase in the last 24 hours, surpassing Bitcoin’s 4.5% rise. At the time of writing, Ethereum’s price has dropped to $3,694. Its previous record was $4,878 in November 2021.
In research released on Tuesday, Chhugani and Sapra stated, “We would expect similar price action for ETH.” Two prominent Bloomberg Intelligence analysts created a stir on Monday when they increased the likelihood that an ETH ETF will be approved from 25% to 75%.
James Seyffart and Eric Balchunas, analysts for Bloomberg Intelligence, said they revised their forecast for the ETF in response to rumors that the SEC was talking to exchanges more frequently. As previous, analysts have expressed it appears that the US’s approval of Ethereum ETFs is at a standstill.
Potential SEC approval of Ethereum ETFs could take two steps: first, the ETF would need to be approved in theory, but the products wouldn’t actually be sold in the market until after that. Observers of the market have interpreted this distinction favorably.
Confusion has spread throughout the market as a result of the uncertainties surrounding ETF clearance, especially on prediction sites like Polymarket where users have staked $8 million on the result. Existing bets may become more complex if a two-step approval process is implemented.
During these changes, Bitcoin has increased by 4.5% and passed over $70,000 in the last day, while Ethereum has gained 22% to $3,790. With ramifications for other applicants as well, the market is eager to see the SEC’s ruling on VanEck’s Ethereum ETF proposal.
