Ethereum ETF: Countdown to liftoff? Everything you need to know before blastoff

The community speculates that the Ethereum ETF will eventually enter the market, following in the footsteps of the Bitcoin ETF. The Commission approved 11 applications on January 10, 2024, enabling investors to direct their funds to Bitcoin without any hesitation. Speculations state that Ether ETF is the next big thing because it is the second biggest token in valuation after Bitcoin. Plus, it already has the needed backing of the global community.

The Ethereum ETF may be about to cross the finish line. The long-awaited product also brings predictions and news about the token.

The Latest Buzz

ETH is trading at $2,233.48, a drop of 0.31% in the last 24 hours. It is disappointing to see the token exchanging hands at that value, considering it was only a few days ago when it was listed at $2,400. Sustaining that mark was easy at a time when BTC was experiencing a free fall. However, the inevitable happened: the token is below the said mark.

More talks about Ethereum are:

  • Fidelity ETF

With no word on BlackRock’s efforts at the time of writing, it has been discovered that the SEC has delayed its ruling on the Fidelity ETF until March 5, 2024. At the moment, it is unclear whether the Spot Ethereum ETF will be launched. Analysts predict another extension, which will most likely be approved by the end of the year.

  • Ethereum classification in limbo

There is little clarity about where Ethereum stands—security or commodity. This has brought it under stringent scrutiny before any proposal moves up the ladder. Bitcoin was a rather easier option to clear for the SEC, but ETH has come up with a different story. Proposals will move forward once the Commission acknowledges that ETH is not a security.

  • JPMorgan skeptical

The banking giant has predicted that the Ethereum ETF will not see the green light before May 2024. Interestingly, that is the time around which Bitcoin Halving could take place. Assuming both events occur consecutively, it will trigger an uptick in the cryptosphere instantly.

Another buzz happening amid the anticipation for Ether ETF pertains to XRP ETF. The community then waits for each new cryptocurrency to enter the market.

A Beacon of Hope

While it appears that an Ethereum ETF will be launched, it really discusses the lesson that the SEC learnt while approving the Bitcoin ETF. There is a likelihood that the Commission will make it easier for asset managers to have ETF applications approved. It will erase the legal impediments, rendering them obsolete.

The SEC has committed to the same, except for the ongoing legal battles with Ripple and Grayscale. These could go on for a while.

Hester Peirce, the SEC Commissioner, has confirmed the vow, adding that they desire never to make those mistakes again. This is believed to be an echo of industry opinions. If that happens, the community can expect Ether ETF to sail smoothly, unlike Bitcoin ETF.

The Crypto Mom making that announcement has sparked a beacon of hope.

Price Predictions and Prospects

There are three perspectives on the predictions and prospects of ETH. There are bullish sentiments, a warning about the journey being a roller coaster ride, and suggestions about how traders should play their game.

  • Bullish forecast

Approval of the Ether ETF is likely to trigger an uptick in the valuation of ETH, positively taking the ETH price to the milestone of $4,800. This is an estimated Ethereum prediction based on the assumption that every factor—micro or macro—plays out favorably.

  • Roller coaster ahead

Volatility is not taking an exit stand any time soon. The fall of BTC in recent days only makes it evident. Irrespective of how much time Ether ETF takes or when it is launched as a product, ETH will remain subject to heavy fluctuations on the chart.

  • Marathon, not a sprint

Cryptocurrencies have proven beneficial to short traders on a few occasions. Generally, owning a digital currency has come at the expense of taking the longer route. This suggests that having BTC, ETH, or any other token in the wallet is only beneficial provided the holders are not distracted by short-term gains. Instead, they apply the foundations of long-term holding.

The priority is to get ETH above the mark of $2,500. That will pave the way for it to surpass $4,500.

Beyond the Headlines

DeFi and Web3 games are making the headlines, fueling the adoption of cryptocurrencies. It is mostly the Web3 games segment that is bringing billions of users on board, facilitating the adoption of digital tokens.

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DeFi has been a boon for financial inclusion. Its expansion is tied to the rise of cryptocurrencies. One could also argue that the wider the DeFi rings stretch around the world, the more exposure cryptocurrency obtains. Seasoned VC Vance Spencer has backed the expansion. This is based on a reasonable projection that Web3 games will add the next 100 million active players by 2025.

Conclusion

The Ethereum ETF saga is unfolding with time. It is ideal to keep track of the latest developments so as to not miss out on any advantage that they have to offer. Ethereum ETF could see a green light for the first time in May 2024.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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