As the US Securities and Exchange Commission (SEC) says ethereum-etfs/” target=”_blank” rel=”nofollow”>approved Across ethereum ETF spot applications, despite increased regulatory uncertainty surrounding the cryptocurrency, investors are becoming more optimistic about the potential for the price of eth to reach new heights.
Bullish Sentiment Surrounds ethereum ETF Approval
Arthur Cheong, founder and CIO of DeFiance Capital x.com/Arthur_0x/status/1794746610175615428″ target=”_blank” rel=”nofollow”>predict that eth could hit a yearly high of $4,500 before newly approved index funds begin trading, surpassing its mid-March high of $4,096. This projection is just shy of eth's all-time high of $4,878 during the 2021 bull run.
Besides x.com/WuBlockchain/status/1794921168824311846″ target=”_blank” rel=”nofollow”>survey Conducted by WuBlockchain on the Chinese community revealed that 58% of respondents believe that eth has the potential to rise to $10,000 or even higher in this market cycle.
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The SEC's recent regulatory shift toward approving Ether ETFs has intensified bets on further price gains. In the seven days following the announcement, eth saw a 26% surge, marking the biggest weekly advance since 2021. crypto bull market.
This development brings hope to speculators, considering the success of the US bitcoin spot ETFs, which have accumulated $59 billion in assets since their record debut in January.
However, ethereum spot ETFs will not participate in betting, earning rewards by pledging tokens to maintain the ethereum blockchain. This omission could potentially decrease interest in these funds compared to holding the tokens directly.
Although additional SEC approvals are required before issuers like BlackRock and Fidelity Investments can launch their products, the timeline for these launches remains uncertain. As of now, eth is trading around $3,900, with expectations of further upside potential.
Options bets indicate potential rise to $5,000
According to a Bloomberg crypto-traders-bet-on-ether-eth-record-volatility-spike-on-etf-hype” target=”_blank” rel=”nofollow”>reportAnalysts like Pepperstone Group head of research Chris Weston believe pullbacks in eth are buying opportunities as risk remains skewed to the upside.
Interestingly, as seen in the chart below, some traders are placing bullish options bets, with rallies indicating a possible rise to $5,000 or more.
Additionally, eth's volatility, as indicated by the Ether T3 Volatility Index, is expected to be higher than that of bitcoin, highlighting the potential for larger price swings in the second-largest digital asset.
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Futures market insights, particularly the level of open interest in Chicago Mercantile Exchange (CME) ethereum futures, provide evidence of institutional demand for regulated cryptocurrency exposure.
While open interest in CME Ether futures is growing, it is still significantly lower than that of CME bitcoin futures. This suggests relatively lower institutional exposure to Ether and could potentially impact initial inflows into Ether ETFs.
However, as the approval of ethereum ETFs opens new avenues for investment and speculation, the market is closely following the evolution of eth. price performancebullish sentiment and optimistic predictions prevailing among investors.
Featured image from Shutterstock, chart from TradingView.com
