Ethereum Set for Bull Run After ETF Approval: Analysts Predict Surge
Ethereum (ETH) is up over 25% in just two weeks, and despite potential selling from Grayscale, analysts foresee strong long-term growth.
Last week, the SEC shook the crypto world by approving spot Ethereum exchange-traded funds (ETFs). This unexpected move has market analysts predicting a significant surge for Ethereum, the second-largest cryptocurrency by market cap.
After months of delays, Wall Street's top regulator finally gave the nod to multiple asset managers for Ethereum ETFs. This approval has set the stage for a potential explosive increase in ETH's value.
Even with anticipated selling pressure from the nearly five-year-old Grayscale Ethereum Trust (ETHE), data firm Kaiko remains optimistic about ETH’s long-term prospects. Kaiko noted that Bitcoin experienced a similar short-term dip when its ETFs were approved in January, as investors cashed out of Grayscale's GBTC product.
“The ETF approval removes significant regulatory uncertainty, boosting ETH’s long-term performance.”
JPMorgan, the largest bank in the US, anticipates the funds will begin trading before November. Once launched, these ETFs will offer investors a way to buy shares of ETH on the stock exchange, similar to Bitcoin ETFs.
The SEC had been slow to respond to ETF applications, causing skepticism among analysts from Bloomberg and CoinShares. They doubted approval would come by the May deadline. However, rumors of an impending approval circulated last week, and the SEC’s quiet confirmation electrified the crypto community.
The price of ETH has surged in response, hitting $3,968 on Monday—a 30% increase in two weeks, according to CoinGecko. Yet, ETH needs to rise over 20% more to surpass its all-time high of $4,878 from 2021.
With the SEC’s approval, Ethereum is poised for a significant bull run, promising exciting times ahead for investors.
