Bitcoin
‘Opportune Timing’ – Bitcoin and Ethereum Suddenly Brace for $4.2 Trillion ETF Price Bomb
Bitcoin
Bitcoin
and ethereum soared higher, Rising as Meme Stock Traders Spot Surprising New Target.
Bitcoin’s price soared to more than $70,000 per Bitcoin, coming close to its all-time high, while Ethereum rose about 20% to nearly $4,000 per Ether. as the crypto market prepares for a “crucial” vote in Washington this week.
The massive rally in Bitcoin and ethereum comes after the US Securities and Exchange Commission (SEC) requested an urgent update from those who had filed to issue spot ethereum exchange-traded funds (ETFs) – with analysts predicting that imminent approval could trigger a $4.2 trillion price earthquake.
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The price of bitcoin rose sharply along with the price of ethereum after analysts raised the… [+] chances of an Ethereum spot ETF being approved this week.
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The SEC’s opening communication with potential fund managers was seen as a sign that it could approve a spot Ethereum ETF sooner than previously thought, potentially as early as this week.
Influential ETF analysts James Seyffart and Eric Balchunas of Bloomberg Intelligence raised their odds of eventual approval to 75% from 25% previously, with Balchunas post to X that it is an “increasingly political issue” – a reference to US President Joe Biden apparent opposition to encryption compared to 2024 Republican nominee Donald Trump’s recent embrace of it.
Meanwhile, the odds of approval for the spot Ethereum ETF by May 31 on Polymarket, a prediction market, increased from 13% to 73%.
“In a surprising move yesterday, the SEC asked exchanges to update and make changes to their spot Ethereum ETF filings on an expedited basis,” K33 senior analyst Vetle Lunde wrote in a report. “This is a strong indicator that Ethereum spot ETFs will be approved before the VanEck deadline on Thursday, May 23.”
A decision is expected this week on exchange-traded fund (ETF) applications from VanEck and then Ark/21 Shares, due on Thursday and Friday, respectively.
“The key now will be whether the SEC actually approves spot Ethereum ETF applications on Thursday,” Standard Chartered analyst Geoffrey Kendrick wrote in an emailed note. “Remember when the same thing happened with bitcoin ETFs (Jan. 10). The approval came close to the close of the US stock market on the 10th and followed the report of the SEC X account hacked on the 9th, also around the same time of day.”
Kendrick said he expects the arrival of spot Ethereum ETFs on Wall Street to help push the price of Ethereum to $8,000 by the end of 2024 and a whopping $14,000 by the end of 2025.
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The price of ethereum has risen along with the price of bitcoin over the past year.
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“The ethereum news, if accurate, comes at an opportune time for bitcoin,” Kendrick wrote, pointing to bitcoin ETF flows that have reached a new all-time high of $12.9 billion.
US bitcoin spot ETFs reported a sixth consecutive day of inflows yesterday, the longest positive streak the funds have seen since mid-March, according to data from SoSoValue reported by The Block. The fleet of spot bitcoin ETFs has proven to be a huge success since their debut in January, becoming some of the fastest-growing ETFs of all time.
“An approval of the Ethereum ETF will further legitimize the sector and therefore also be positive for Bitcoin,” Kendrick added. “I would expect a new all-time high in bitcoin by the weekend, up to the $73,798 level of March 14. And besides, this just adds more comfort to my predictions of $150,000 for year-end 2024 and $200,000 for year-end 2025.”
If the price of bitcoin and the price of ethereum reach the levels predicted by Kendrick, they would together be worth almost $4.2 trillion.