The market is abuzz with anticipation for the trading of spot Ethereum Exchange Traded Funds (ETFs), with many expecting this development to be confirmed in the coming weeks. Although initial approvals have been granted
, the U.S. Securities and Exchange Commission (SEC) still needs to give final approval to the S-1 filings, which detail the management of these funds.
Ana de Mattos, a technical analyst and trader with Ripio, explained, “Even though they have been approved, trading of these ETFs is not yet scheduled because the SEC needs to approve the S-1 filings, which are still under review.”
Last week, the SEC requested exchanges to amend their filings and subsequently approved the forms on Thursday, the 23rd. “Markets are awaiting final SEC confirmation on the asset managers’ forms, which could happen soon and would be the last hurdle before these products are approved for trading,” noted Manuel Villegas, digital asset analyst at Julius Baer.
The market sees the commencement of trading as imminent, which is reflected in several indicators. For instance, the discount on Grayscale’s closed Ethereum Trust has narrowed significantly from about 20% to 1% recently. Additionally, Julius Baer pointed out that the options markets are showing a clear preference for call options over put options for Ethereum, indicating bullish sentiment.
“While investors will benefit from closer spot price tracking with these products, the approval is largely priced in,” noted Julius Baer.
Analysts predict not only a rise in Ethereum, which has already surged over 20% in May, but also in related technological projects. According to de Mattos, Ethereum faces strong buying pressure, with significant resistance at $4,565. If this level is breached, the cryptocurrency could surpass its all-time high, targeting the first Fibonacci expansion level at $5,454, with short- and medium-term supports at $3,200 and $2,980.
As of 4:30 PM ET, Ethereum was trading at $3,837.43, down 1.03%.
American Crypto Scenario
Julius Baer suggests that the rapid progress in the approval process may be linked to the upcoming American elections. Former President and current candidate Donald Trump supports various crypto-related initiatives, while President Biden is expected to decide on signing the 21st Century Financial Inclusion and Technology Act. This legislation, supported by both the Republican Party and a significant portion of the Democratic Party, aims to clarify digital asset regulations and provide a framework for service providers.
Ethereum’s Moment
Ethereum is approaching a pivotal moment, according to Daniel González, Crypto Analyst at Bitso. The network’s growing adoption is driven by technologies critical to Web3 development, the expansion of smart contracts, and increased financial inclusion through decentralized payments. These factors highlight Ethereum’s potential and its role in the future of technology and finance.
