Crypto bulls think ether ETF approval could send prices to new highs — and make way for more funds

Crypto enthusiasts are optimistic that the approval of an ether exchange-traded fund (ETF) could have a significant impact on the market, potentially driving prices to new all-time highs and opening the door for additional investment funds. The U.S. Securities and Exchange Commission’s unexpected shift in stance has fueled speculation that a spot ether ETF could be approved as early as this week, prompting crypto investors to increase their positions. Analysts believe that if the SEC gives the green light to an ether ETF, the token’s price could surge to $4,000 in the short term and potentially reach as high as $5,000 by the end of the year. This bullish sentiment is supported by the fact that ether already reached a record high of $4,865.81 in November 2021. On Tuesday, ether saw a 6.7% increase, trading at around $3,736, and has gained 63.4% year-to-date.
For months, there has been a pessimistic outlook among participants in the crypto industry regarding the approval of an ether ETF. This was largely due to the lack of engagement from the SEC on the matter. However, there seems to have been a recent shift in the regulator’s stance.

According to reports, the SEC has instructed major exchange operators Nasdaq, Cboe, and the New York Stock Exchange to revise their applications for listing spot ether ETFs. This indicates that the regulator may be leaning towards approving such products. The agency is facing final deadlines by the end of this week to make a decision on ether ETF applications from VanEck, Ark Invest, and 21Shares.

Requests for comments from representatives at Nasdaq, Cboe, and NYSE have gone unanswered.

Alexander Blume, the CEO and co-founder of Two Prime, an investment advisor focusing on digital assets, suggests that the last-minute request to the exchanges may indicate a change in course by the SEC, as they seek to expedite the approval process for these filings.
During a call with MarketWatch, Blume stated that the approval of an ether ETF would indicate a shift in the political environment, making it more favorable for digital assets in the United States. This approval would also showcase the growing interest of institutional investors in crypto assets, as mentioned by Chris Kline, the COO and co-founder of Bitcoin IRA. Additionally, if ether ETFs were to receive approval, it would pave the way for ETFs to invest in other cryptocurrencies directly. Blume pointed out that Ethereum’s proof-of-stake algorithm is similar to most other blockchains, with the exception of Bitcoin, which uses a different consensus mechanism known as proof of work.
According to him, the actions taken by Ethereum will likely serve as a model for Solana, Avalanche, and other prominent blockchains, along with their corresponding cryptocurrencies.