Digital asset trading company QCP Capital said in a statement yesterday that there are two main reasons why Ethereum rebounded sharply during the market downtrend on June 18. QCP Capital predicts that with the listing of the Ethereum spot ETF, the price of ETH may approach its historical high of $4,800.
Reasons for ETH price rebound:
Against this background, QCP Capital said that ETH prices rose sharply from the 18th low of $3,400, and the implied volatility increased significantly to 65% in the short term. There are two main factors behind this strong bullish sentiment:
SEC decides to end investigation into Ethereum 2.0: SEC rules out charges that ETH sales were securities transactions.
Potential issuers of Ethereum ETFs responded positively to the SEC's comments: the issuers plan to submit their responses within this week.
QCP Capital pointed out that the options market is currently showing optimism, and it is observed that the trading of upside options of different maturities is very active. In addition, QCP Capital also predicted that after the listing of ETH spot ETF, the price of ETH is expected to approach the historical high of $4,800. Although there is uncertainty about the market's acceptance of ETH spot ETF, if 10%~20% of the flow of Bitcoin spot ETF can be captured, it may push the price of ETH to more than $4,000 and close to its historical high of $4,800.
SEC to End Ethereum Investigation:
According to previous reports, Consensys, the parent company of Metamask, the Little Fox Wallet, received a Wells Notice from the SEC in April. The SEC determined that Consensys was an unlicensed broker-dealer and intended to take enforcement action on the grounds that the MetaMask wallet violated securities laws. In order to defend the Ethereum ecosystem, Consensys also filed a lawsuit with the SEC that month, accusing the SEC of intending to identify Ethereum as a security, which was an "illegal seizure of power" over Ethereum, and asked the court to declare that Ethereum was not a security, and claimed that any investigation of ConSenSys based on the premise that Ethereum was a security would violate administrative procedures. After two months of silence, Consensys tweeted earlier yesterday that the SEC would end its investigation into Ethereum and would not accuse the sale of Ethereum of being a securities transaction.
Ethereum spot ETF issuers have until Friday to respond to SEC comments:
Meanwhile, according to TheBlock, two people familiar with the matter revealed that Ethereum spot ETF issuers had received comments on the S-1 document from the SEC last week and planned to submit responses by this Friday. A source from an issuer said that the latest round of comments was "reasonable" and expected to be approved as soon as possible, while a source from another issuer called the comments "relaxed."
Previously, Eric Balchunas, a Bloomberg analyst who has always been closely following ETF developments, predicted in an article on June 15 that the launch date of the Ethereum spot ETF would be advanced to July 2. He said that he heard that SEC staff provided the issuer with comments on the S-1 form, which were brief and without major problems, and asked for a response within a week. As many institutions and analysts release news about the SEC's approval progress for the Ethereum spot ETF, we are getting closer and closer to the listing of the Ethereum spot ETF. However, whether the cryptocurrency market can get rid of the continued decline in the depressed mood through the listing of the Ethereum spot ETF still needs to be continuously watched.
