With the approval of 11 spot Bitcoin exchange-traded funds (ETF) this week from the United States Securities and Exchange Commission (SEC), eyes are turning to the second largest cryptocurrency by market capitalization, Ethereum, to speculate whether the asset will also receive the same greenlight.
Over the last 7 days, in anticipation of the spot Bitcoin ETF approval, Ethereum’s price has surged 15.79%.
Ethereum Spot ETF Speculation
This week, the SEC approved spot Bitcoin ETF applications from 11 major asset management firms. The cryptocurrency industry is now buzzing with speculation about when Ethereum will be granted a similar approval.
Steven McClurg, CIO of Valkyrie Funds, expressed that he wouldn’t be surprised to see the emergence of a spot Ethereum ETF. Furthermore, he also sees a similar product for Ripple’s native token, XRP, coming to light.
It appears that he is not the only one with a positive outlook on the prospects of an Ethereum ETF. Ethereum’s price has risen over the past week amid the heightened anticipation of the approval of the spot Bitcoin ETF,
At the time of publication, Ethereum is priced at $2,602. It has experienced a 15.79% surge in the past 7 days and a 20.30% spike over the last 30 days.
A recent report indicates that several analysts hold an optimistic view.
Leo Mizuhara, CEO of Hashnote, foresees the unavoidable introduction of Ethereum ETFs. According to the report, he believes there will be a market split, differentiating between private market ETH-staking exposure and public market offerings.
He suggests that the swift rise in Ethereum’s performance following the Bitcoin ETF approvals reflects the market’s interest in a prospective Ethereum ETF.
Read more: What is the Ethereum Shanghai Upgrade?
Ethereum Futures ETFs Had a Disappointing Debut Week
Meanwhile, Brian D. Evans, CEO of BDE Ventures, also believes it is only a matter of time before the market sees an Ethereum ETF.
He highlights the existence of an ETH futures product as a forerunner and a model for an Ethereum spot ETF.
Evans points to the recent price surge in Ethereum as a marker of the market’s anticipation.
Meanwhile, another report highlighted that Eric Balchunas, a well-known ETF analyst who closely tracked the entire Bitcoin ETF narrative over the past year, is growing increasingly optimistic about the approval of spot Ethereum ETFs, suggesting it could happen in as little as five months.
“Bloomberg ETF analyst Eric Balchunas said he expects a 70% chance of an Ethereum spot ETF being approved in May,” the report stated.
However, Ethereum Futures ETFs debuted last year, and the first week left investors with a sense of disappointment.
In October 2023, BeInCrypto reported that the debut of several Ethereum Future ETFs left many speculators feeling underwhelmed.
Nine Ethereum Futures ETFs were introduced to the market last year. These were launched by investment firms ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares.
However, upon their launch on October 2, Ether Futures attracted just under $2 million in inflows.
Read more: Ethereum Merge: Everything You Need To Know
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