ETH Price Nears $4,000 as Market Uncertainty Looms Around ETH ETF

On Monday, the price of ethereum rose to $3,900, driven by a wave of bullish sentiment among investors.

ethereum (eth) is on track to surpass the $4,000 mark even before the launch of ethereum spot exchange-traded funds (ETFs), as the market appears to be highly “under-allocated,” according to the founder of DeFiance Capital , Arthur Cheong.

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In a post on social media platform To back up his claim, Cheong cited a survey indicating that nearly 50% of respondents have allocated only up to 25% of their portfolios to ethereum, suggesting that the market may be underestimating its potential.

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The US Securities and Exchange Commission (SEC) approved multiple ethereum spot ETFs on May 23, after a series of delays. This decision has raised investor expectations that traditional market participants will inject new capital into ethereum, mirroring the surge seen with bitcoin spot ETFs that helped btc set a new all-time high in March of $73,750.

However, ETF issuers still require SEC approval for their registration statements, which detail disclosures to investors. Unlike stock filings, there is no set timeline for the SEC to approve these filings, creating uncertainty about the trading start date.

While a Reuters source familiar with the matter technology/us-sec-approves-exchange-applications-list-spot-ether-etfs-2024-05-23/” target=”_blank” rel=””>indicated The trade approval process could take days or weeks, without providing specific details. Former SEC Chairman Jay Clayton in a interview with CNBC, stated that the start of eth ETF spot trading is a question of when, rather than if, and described it as “inevitable,” but acknowledged that there are still some unresolved issues. At press time, ethereum is trading at $3,910, according to data from CoinGecko.