Bernstein Analysts Expect Ethereum Price to Rise This Month

Approval of spot Ethereum ETFs in the US may not be a political decision.

The US Securities and Exchange Commission's (SEC) declaration coded SAB 121 makes it difficult for financial institutions to provide custody services for cryptocurrencies. The House of Representatives and the Senate rejected this declaration.

However, US President Joe Biden vetoed the approved bill to reject the declaration.

Biden's opponent this year, Donald Trump, criticized Biden's anti-cryptocurrency policies last month and asked for votes from the cryptocurrency community. The SEC's subsequent approval of spot Ethereum ETFs was, for some, a sign of a political shift.

According to Bernstein analysts, Biden's veto proved this comment unfair. “This political interpretation sounds less credible since the President vetoed the proposal overturning SAB 121, and it is likely that the SEC wanted to avoid a legal challenge by being pragmatic,” analysts said.

In order for spot Ethereum ETFs to be established, S-1 files also need to be approved. After this, the Ethereum price is expected to rise.

“Considering ETH's supply situation (staking, smart contracts, HODL data), ETH may see a positive price movement once ETFs are established (expected in the coming days/this month),” Bernstein analysts said.