The crypto community is buzzing with anticipation as the SEC speeds up its review of Spot Ethereum ETFs. The approval of these ETFs could have a major impact on Ethereum and the broader crypto market.
In May, the market expected a denial of Ethereum ETFs and worried that Ethereum might be labeled a security. However, recent speculation about the approval has changed the outlook. Bitcoin’s price surged above $70,000, and Ethereum saw a double-digit rally, climbing above $3,500.
Bloomberg analysts Eric Balchunas and James Seyffart have increased their probability estimate of Ethereum ETF approval from 25% to 75%. This boost reflects growing optimism that regulatory approval is near.
An Ethereum ETF approval could significantly affect ETH’s price. Bitcoin’s market capitalization is $1.3 trillion, while Ethereum’s is $376 billion, making Ethereum more prone to price surges. Additionally, the supply of ETH available on exchanges is at an all-time low, with only 9.9% of the total supply available.
Unlike Bitcoin, Ethereum doesn’t have miners adding to its supply. Since transitioning to a proof-of-stake mechanism, Ethereum has become deflationary, reducing its supply further. Many holders are staking, farming, using ETH as collateral, or engaging in decentralized finance (DeFi) activities, limiting the available supply.
Supply Issues in Focus
The limited supply of ETH could lead to significant price increases if demand rises, even slightly, from traditional finance (TradFi) investors. This scarcity means that any inflow into Ethereum could greatly impact its price.
The approval of an Ethereum ETF and a rise in ETH’s price could spark a major rally in the altcoin market. Cryptocurrencies like Solana, Avalanche, and various Layer-2 solutions are expected to see significant gains following this development.
The crypto market is on the verge of a potentially transformative moment. The approval of Ethereum ETFs could reshape everything, bringing new growth and opportunities
Also Check Out : Ethereum Surges Over 20% as Rounds of Spot ETF Approval Loom Over the Market: Is a New ATH on its Way?
How high do you see Ethereum’s price climbing if the ETF is approved? Let’s hear your predictions!
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