The approval of US-based Ethereum Spot exchange-traded funds (ETFs) could boost Ethereum's market valuation. However, even if these ETFs are rejected, it could be more of an obstacle than a blow, according to Jupiter Zheng, head of research at HashKey Capital.
Zheng told Cointelegraph earlier this month that "even if the ETFs are rejected, it won't be such a bearish factor because the market hasn't taken it into account yet, and #bitcoin ETFs remain an entry point for traditional funds.
Zheng is also optimistic about the potential bullish effect of approved ETFs, especially those that involve betting, which could trigger a wave of short position liquidation and further boost the price of #BTC .
The U. S. Securities and Exchange Commission (SEC) is expected to make a decision on a spot #ETF for Ethereum within the next month. Unlike the situation with the bitcoin spot ETF, where there are reports of progress, the current atmosphere around the Ethereum ETF is less optimistic.
Bloomberg ETF analyst Eric Bartunas downgraded the probability of approval to 35%. Similarly, analysts at Barron's and JP Morgan remain skeptical due to the SEC's slow action.
VanEck, which issued a spot fund for Ethereum, said in a recent interview with CNBC that the SEC's response could be an outright rejection.
While unlikely, the approval of an ETF for Ethereum may not be the only source of momentum in the market right now. Prominent crypto investor Gehl believes that the bullish period for Ethereum will continue.
According to him, the chart of Ethereum before the recent bitcoin rate halving on April 20, 2024 shows a similar price pattern compared to the May 2020 drop.
Bitcoin's recent halving of the bitcoin rate signaled the start of $ETH's active growth.
According to CoinMarketCap, the price of $ETH in 2020 was around $210 before the rate halving, but rose to $433 on August 14, a 106% increase. Gehl sees this historical pattern as an indicator that the price of #ETH could rise again after halving.
While the future of spot Ethereum ETFs remains speculative in the U. S.
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