Ethereum Price (ETH) Surges: ETF Approval to Unleash a Tidal Wave of Demand

The cryptocurrency market is abuzz with speculation as Ethereum’s price has surged over 20% to around $3,792, fueled by growing expectations that US regulators might finally approve spot Ether ETFs.

The sudden price rally has caught many traders by surprise, as most had anticipated the Securities and Exchange Commission (SEC) would delay or reject the first Ether ETF by Thursday.

TLDR

Ethereum’s price has surged over 20% to around $3,792 due to growing expectations of spot Ether ETF approval by US regulators.
Standard Chartered is 80-90% confident that Ether spot ETFs will launch in the US this week, predicting significant inflows of 2.39-9.15 million ether ($15-45 billion) in the first 12 months after approval.
Bloomberg Intelligence analyst Eric Balchunas has increased his prediction for approval to 75%, up from 25%, citing potential policy shifts at the SEC.
VanEck and ARK Investment Management are leading the charge for spot Ether ETFs, with decision deadlines set for May 23 and May 24, respectively.
Ethereum whales have yet to participate in the current rally, and their involvement could potentially drive the ETH price further past $4,000.

Adding to the bullish sentiment, Standard Chartered has expressed high confidence in the launch of Ether spot ETFs in the US this week.

Geoff Kendrick, Head of FX Research and Digital Assets Research at the bank, stated that they are 80-90% confident in the approval and predict significant inflows of 2.39-9.15 million ether in the first 12 months following the green light. In US dollar terms, this equates to roughly $15 billion to $45 billion.

Bloomberg Intelligence analyst Eric Balchunas has also significantly upped his prediction for approval, now at 75%, up from 25%.

In an X post, Balchunas mentioned that he was hearing about a potential policy shift at the SEC, causing everyone to scramble as they had previously assumed the applications would be denied.

The SEC is set to announce its decision on several Ether ETF applications this week, with VanEck and ARK Investment Management leading the charge. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum. The decision deadlines for VanEck and ARK are set for May 23 and May 24, respectively.

UPDATE: It’s happening. We have at least 5 of the potential #Ethereum ETF issuers that have submitted their Amended 19b-4’s in the last ~25 min.Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE. pic.twitter.com/pHGt8iRWi8

— James Seyffart (@JSeyff) May 21, 2024

On-chain data reveals that Ethereum whales have yet to participate in the current rally. If these large players decide to enter the market, it could potentially drive the ETH price even higher, possibly surpassing the $4,000 mark and targeting new all-time highs.

Ethereum co-founder Joe Lubin, who is also the founder of crypto infrastructure firm ConsenSys, believes that the approval of spot Ether ETFs could lead to a “floodgate” of demand for Ethereum.

He stated that there is going to be a significant amount of natural, pent-up pressure to purchase Ether through the ETFs.