Critical Decision in Ethereum Could Raise Other Altcoin Prices
According to analysts, the decision of the SEC for $ETH may increase the prices of other altcoins.
The US Securities and Exchange Commission (SEC) will make a decision on the spot Ethereum ETF applications filed by VanEck and Ark/21 Shares on May 23-24, respectively.
Many investors expect the SEC to reject these applications. So much so that Polymarket investors give a 10% chance of Ethereum ETFs being approved by May 31.
Bizantine Capital manager March Zheng thinks that spot Ethereum ETFs could be approved within the next year, even if they are rejected this month. According to Zheng, the issuers' omission of staking returns on Ethereum from their applications supports the claim that ETH has commodity status.
Coinbase analyst David Han also said the market “underestimated the date and likelihood of a possible approval decision.”
Approval of Ethereum ETFs could increase the value of Layer-2 projects like BASE, according to Zheng