On Monday, Ethereum (ETH) saw its price soar to $3,900, fueled by a surge of bullish sentiment among investors. This upward momentum places Ethereum on the brink of surpassing the $4,000 milestone, even before the anticipated launch of spot Ethereum exchange-traded funds (ETFs).
Arthur Cheong, founder of DeFiance Capital, predicts that Ethereum could reach $4,500 ahead of the ETF trading debut. In a social media post on May 26, Cheong noted that the market appears significantly “underallocated,” with nearly 50% of poll respondents having dedicated only up to 25% of their portfolios to Ethereum. This underallocation suggests the market may be undervaluing Ethereum’s potential.
The U.S. Securities and Exchange Commission (SEC) approved several spot Ethereum ETFs on May 23, after a series of delays. This decision has bolstered investor expectations that traditional market players will infuse new capital into Ethereum, echoing the surge seen with spot Bitcoin ETFs that propelled BTC to a new all-time high of $73,750 in March.
Despite this approval, ETF issuers still need the SEC to approve their registration statements, which include investor disclosures. Unlike exchange filings, there is no set timeline for the SEC to approve these statements, creating some uncertainty about the exact launch date for trading.
A Reuters source familiar with the matter suggested that the trading approval process could take days or weeks, without providing specific details. Former SEC Chairman Jay Clayton, in an interview with CNBC, stated that the start of spot ETH ETF trading is a question of “when, rather than if,” describing it as “inevitable” while acknowledging there are still unresolved issues.
As of press time, Ethereum is trading at $3,910, according to data from CoinGecko.
