Andrey Stoychev, Head of Prime Brokerage at Nexo, has predicted that Ethereum price could hit $10k if it succeeds in getting the spot Ethereum Exchange Traded Funds (ETF) approved by the United States’ Securities and Exchange Commission ( SEC).
According to CoinTelegraph, Stoychev said the US SEC approval of Ethereum spot ETF could take months, but it might become the main catalyst catapulting the price of the second largest cryptocurrency to $10k.
“ETH ETFs in the USA and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF.” Stoychev said.
The prediction follows an impressive bullish run by Ethereum which saw its price surge to two-month high of $3700, signifying a 21% rise in the last 24 hours.
The recent Ether rally is driven by reports that the US SEC has a made a U-turn on its stance on spot Ethereum ETF approval asking ETF exchanges to update their 19b-4 filings, according to reports.
Stoychev explained that despite the timeline for a potential spot bitcoin ETF approval still being difficult to predict, the recent moves by the US SEC are very positive and spells good for the crypto industry.
“This seeming change in perception towards Ether ETFs may come to signal a switch in stance from the SEC. A speculative reason for that could be the upcoming US presidential election which has come to highlight that crypto users may play a defining role, especially in swing states.” Stoychev said
The next deadline for the SEC approval is May 23rd and it is still uncertain whether it will be approved.
Senior Bloomberg ETF analyst, Eric Balchunas, has raised the approval odds for this proposal to 75%, up from 25%. However, this increased likelihood only pertains to the 19b-4 form.
However, Ether ETF issuers will also need to get their S-1 filings approved, according to Bloomberg ETF analyst James Seyffart, who wrote in a May 20 X post:
“We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live EtH ETF… That said, if we’re correct and we see these theoretical approvals later this week. It *should* mean that S-1 approvals are a matter of ‘When’ not ‘If’…” Seyffart tweeted.
Yunus Ozkaya, CEO and founder of the FreeBnk app, explained his own perspective on the issue saying the entire process could be delayed until 2025.
“I am not expecting anything earlier than 2025 to be tradeable, including S-1 approval. However, when it does, it will have a really big positive effect on the market, even if S-1 approval takes more time. I am expecting they will approve it by May 23rd for Vaneck’s 19b-4 deadline.”
What To Know
- A spot ETF approval for Ethereum by the US SEC would positively reflect on the crypto market and according to analyst can drive Ethereum price to up to $10k.
- Ethereum is currently experiencing a bullish run following reports of potential approval of its spot Ether ETF.