The potential endorsement of exchange-traded funds (ETF) on Ethereum (ETH) by the US Securities and Exchange Commission (SEC) has elevated the allure of cryptocurrency among investors. The price of Ethereum has crossed $3000 for the first time since April 2022, driven by this development. According to CoinGecko, Ethereum has appreciated by about 1.6% in the last 24 hours, and by more than 12% in the past week, surpassing other tokens.
An ETF is an investment fund that builds a portfolio of assets, which in this instance are a certain quantity of ETH, and then creates its own stocks tied to these assets. While purchasing ETH-ETF securities, an investor does not directly own the cryptocurrency. However, the share price will depend directly on the price of Ethereum.
The worth of Bitcoin (BTC) has also increased, rising over 2% in the last 24 hours and drawing near the $53,000 mark. The CoinDesk 20 index (CD20) has grown by 0.65% in the same period. The crypto market has generally been bullish in 2024, with token prices far exceeding the amounts recorded in 2023. Since the start of the year, the ETH worth has increased by approximately 30%, surpassing BTC’s growth by 22%.
SwissOne Capital’s Investment Director, Kenny Hearn, said, “We are very close to levels around $3150–$3300. The next level after this will be $3600, which we think can be easily achieved next month or so, as alternative cryptocurrencies continue to catch up.”
The rise in ETH is predicted to continue as market players anticipate Ethereum-ETFs being next in line for US regulatory approval. This potential acceptance will enhance ETH’s appeal amongst more conservative institutional investors, much like the initial Bitcoin-ETFs, which debuted last month, attracted significant investments. Experts believe that the likelihood of approval for the spot Ethereum-ETF in May is at 50%, and approaches nearly 100% in the next 12 months.
This post was last modified on 02/21/2024