News

Bernstein: Spot Ethereum ETF Approval Anticipated Could Drive Price Surge To $6,600

Key Points:

  • Ethereum’s price could rise 75% to $6,600 if a spot Ethereum ETF approval occurs.
  • The SEC is expected to decide on Ethereum ETF applications from VanEck and Ark Investments this week.
According to DL News, Analysts Gautam Chhugani and Mahika Sapra from Bernstein predict that the spot Ethereum ETF approval could boost Ethereum’s price by 75%, reaching approximately $6,600. This projection draws parallels to the SEC’s approval of a similar Bitcoin ETF in January, which led to a comparable increase in Bitcoin’s price.
Bernstein: Spot Ethereum ETF Approval Anticipated Could Drive Price Surge To $6,600 2

ETH Price Surge Predicted with Spot Ethereum ETF Approval

Ethereum’s recent price uptick is fueled by growing optimism over the potential approval of exchange-traded funds (ETFs) tracking the cryptocurrency. According to FOX Business, the Securities and Exchange Commission (SEC) may approve a spot Ethereum ETF as soon as this week.

While the spot Ethereum ETF approval is not guaranteed, there are indications that the SEC staff is increasingly favorable towards at least partial approval of these products, as reported by FOX Business. The decision deadline for the SEC to approve the so-called 19b-4 applications, submitted by the CBOE exchange on behalf of VanEck and Ark Investments in partnership with 21 Shares, is approaching on Thursday.

Market Optimism Grows Amidst ETF Amendments and Listings

This anticipation has already impacted market sentiment. Bloomberg ETF analysts Eric Balchunas and James Seyffart raised the odds of U.S. spot Ethereum ETF approval from 25% to 75% after observing positive signals from the SEC. In response, Ark Invest amended its spot Ethereum ETF application to remove staking components, a move mirrored by Fidelity and Grayscale in their respective filings.

VanEck’s Ethereum ETF application, set for a decision by May 23, has garnered significant attention. The ETF has been listed by the Depository Trust and Clearing Corporation (DTCC) under the ticker symbol “ETHV,” marking a key procedural step. Although currently inactive, this listing positions VanEck for potential final approval, pending regulatory clearance. Notably, VanEck’s is not the first Ether ETF listed by the DTCC, as Franklin Templeton spot Ether ETF was listed last month.

The SEC’s decision is eagerly awaited by investors and could signal a major shift in the cryptocurrency market, potentially driving significant price movements for Ethereum and other digital assets.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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