Bitwise research analyst Ryan Rasmussen projects a 50% chance that ethereum spot ETFs will receive approval from the US Securities and Exchange Commission (SEC) in May.
Additionally, he anticipates that bitcoin will reach $88,000 by the end of 2024.
ethereum ETF approval is at stake
In a recent bitcoin-could-hit-88k-end-225150193.html” data-wpel-link=”external” target=”_blank”>interview On Yahoo Finance, Rasmussen emphasized that ETFs are increasingly attracting interest from institutional investors ahead of their potential approval date. He noted that this development is influencing ethereum's recent performance, as the second-largest digital asset has seen more gains than btc.
Additionally, he expressed concern about the market readiness for the product in line with the SEC's preferences.
bitcoin spot ETFs previously faced rejections until the SEC faced a lawsuit from Grayscale. While the Bitwise researcher doesn't believe a lawsuit is necessary for ethereum ETFs, its approval in May is a coin flip, so there's a 50% chance it will go either way.
Rasmussen also mentioned upcoming ethereum developments that will fuel the expansion of the cryptocurrency. He emphasized the March Dencun upgrade as a refinement aimed at reducing transaction costs on the ethereum network, thereby improving adoption.
Rasmussen's opinion was supported by Matt Hougan, global head of research at Bitwise, who mentioned that he saw an almost 50% chance of approval in May. On the other hand, the Polimercado ethereum-etf-approved-by-may-31?tid=1706129158202″ data-wpel-link=”external” target=”_blank”>website Predictions are less optimistic, with a 44% chance of approval for the ethereum ETF.
Meanwhile, JPMorgan's Nikolaos Panigirtzoglou mentioned last month that they would put no more than a 50% chance of ethereum ETF approval before May. Panigirtzoglou explained that for the SEC to ensure approval of the ethereum ETF, it would need to classify eth as a commodity, which is unlikely in the short term.
The VanEck spot ethereum application is expected to receive its decision from the SEC on May 23, with the anticipation that other decisions on similar filings will follow suit. In particular, the decision process is expected to mirror the bitcoin ETF spot application.
bitcoin could reach $88,000
While Bitwise does not have an ethereum spot ETF application, its bitcoin spot ETF was approved in January. Rasmussen mentioned that he was satisfied with the performance of the product and said that it has generated more than $1 billion in assets.
Rasmussen also mentioned that, in line with previous Bitwise predictions, bitcoin is on track to hit its all-time high of at least $88,000 by the end of 2024.
Furthermore, he said that cryptocurrencies were on track to exit the weak 2022 market and enter a multi-year bull cycle. On the other hand, Hougan predicts that bitcoin will exceed $80,000 this year.
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