Ether ETFs Could Propel ETH Price to $10K

The approval of spot Ether exchange-traded funds (ETFs) in the U.S. could potentially push Ether’s price to $10,000.

Although the SEC’s approval process for ETFs might take several months, the introduction of these ETFs could serve as a major catalyst for boosting Ether’s price, as stated by Andrey Stoychev, head of prime brokerage at Nexo.

Stoychev mentioned that “ETH ETFs in the USA and similar products in Asia could drive the asset to $10,000 by the end of 2024, aligning with Bitcoin’s performance post-ETF.”

This prediction follows a substantial price increase for Ether, which surged over 21% in the past 24 hours, reaching a two-month high of $3,771, according to CoinMarketCap data.

ETH/USDT, 1-day chart. Source:TRADING VIEW

The Ether rally follows reports that the SEC has reversed its stance on spot Ether ETFs, possibly due to political pressure, and has asked ETF exchanges to update their 19b-4 filings. Although the timeline for a potential spot Ether ETF remains uncertain, Nexo’s Andrey Stoychev views the SEC’s recent actions as a positive development.

“He suggests that this shift in the SEC’s attitude towards Ether ETFs could be influenced by the upcoming US presidential election, which may underscore the importance of crypto users, especially in key swing states.”

Ether ETF approval may take until 2025

Approval for an Ether ETF might not happen until 2025. The SEC’s next deadline for VanEck’s Ether ETF proposal is May 23. Eric Balchunas, a senior Bloomberg ETF analyst, has raised the approval odds for this proposal to 75%, up from 25%, but this increase only applies to the 19b-4 form.

According to Bloomberg ETF analyst James Seyffart, Ether ETF issuers will also need to get their S-1 filings approved. Seyffart noted in a May 20 post that S-1 approvals could take weeks to months, indicating that a live Ether ETF is still some time away. He emphasized that if theoretical approvals happen this week, it should mean that S-1 approvals are a matter of ‘when’ rather than ‘if.’

Yunus Ozkaya, CEO and founder of the FreeBnk app, told Cointelegraph he does not expect anything to be tradeable before 2025, including S-1 approval. However, he believes that once it happens, it will have a significant positive impact on the market, even if S-1 approval takes longer. Ozkaya anticipates approval by May 23 for VanEck’s 19b-4 deadline.