TLDR
The United Securities and Exchange Commission (SEC) communicated that it is likely to have an expedited process when it comes to Ethereum ETF approval. According to a recent report by Bloomberg, the SEC is likely to consider ETF applications from leading applicants, including VanEck and Ark 21Shares.
The approval of the ETF is likely to have a massive positive impact on the price of Ether. Analysts speculate that the price of Ethereum could go up to $4,000 after the approval. Similar to the activity observed when the Bitcoin ETF was approved, the asset could witness a major influx of investments by institutional buyers.
After the US Securities and Exchange Commission broke out the news of the approval of the Ethereum ETF, a hike of 6.65% in the price of Ethereum was seen over the past month of January. At the time of writing this article, it is being traded at $2,429.
Eric Balchunas, Bloomberg senior ETF analyst, said that there is a 70% chance of ETH ETF approval in May 2024.
Another major impact of the approval will be on the broader altcoin market. Layer-2 blockchains such as Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) are expected to have significant increases. However, there is also an underrated project that might witness a significant positive movement once the ETF is approved.
May 23 is the deadline by which the SEC must consider ETF applications from VanEck and Ark 21Shares. Analysts expected Ethereum’s price to rise to $4000 by 23rd May, assuming that it follows a pattern similar to that of Bitcoin.
Kendrick also compared the tremendous growth of BTC ETFs from $25k in mid-June when ETF applications were submitted by asset managers to $47k as the approvals took place and potential ETH ETFs.
Ether is also expected to avoid much of the selloffs compared to Bitcoin post-ETF approval. Many investors, including FTX, sold billions in holdings of Grayscale Bitcoin Trust (GBTC), causing BTC to fall 20%. This factor is much less in ETH ETF as GBTC’s Ethereum trust holds a smaller portion of the total market capitalization of Ether.
The influx of capital into the Ethereum ecosystem is expected to have a major impact on emerging projects. Algotech (ALGT) is an ERC-20 token that represents the cutting-edge TradFi platform. The project has recently attracted headlines of its successful private seed round, where it raised over $1.1 Million within two days.
Algotech has managed to impress investors with a ground-breaking tokenomics structure. Community members will be entitled to governance, project profiles, and other exciting benefits. Algotech’s phenomenal tokenomics are a key factor in making it a popular choice for investors.
Given the impressive growth of the project, it is expected to grow significantly
beyond its current presale price of $0.04. Market insiders estimate that the token’s price could hit as high as $1 within a few months.
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