The US SEC (Securities and Exchange Commission ) gave its approval for 11 spot Bitcoin (BTC) ETFs (Exchange Traded Funds) on Jan. 10, 2024. The SEC’s decision is a monumental milestone for the cryptocurrency industry. However, the community now sets its eyes on a spot Ethereum (ETH) ETF.
According to Bloomberg ETF analyst Eric Balchunas, there is a 70% chance that the SEC will approve an Ethereum (ETH) ETF by May 2024. According to the analyst, ‘The Ether spot is tied to the hip of [the] Bitcoin spot for sure. It’s gonna go wherever it goes. It’s essentially on a 15-foot rope following it.‘
Balchunas was previously cautious about a spot Bitcoin (BTC) ETF. However, the analyst has since changed his stance. Balchunas is optimistic about an ETH ETF and has a high approval chance.
Also Read: Ethereum Breaches $2,400 While BTC Bleeds, Will ETH Hit $3,000 Soon?
On the other hand, digital asset lawyer Joe Carlasare believes a spot ETH ETF will receive approval from the SEC, but it may take longer than expected.
Firms applying for a spot ETH ETF include BlackRock, VanEck, 21Shares & ARK, Grayscale, etc.. The SEC’s first deadline in 2024 for a decision on a spot ETH ETF is May 23.
Will Ethereum (ETH) hit an all-time high after a spot ETF approval?
Following the SEC’s approval, the crypto markets began to rally. However, BTC is not leading the current surge. Altcoins are taking charge at the moment. Major altcoins are up double digits in the daily charts, while BTC has rallied less than 1%.
A spot Ethereum (ETH) ETF and the recent spot BTC ETF could lead to a bull run for the crypto markets. In such a scenario, ETH could hit a new all-time high.
Also Read: Ethereum: Standard Chartered Predicts ETH May Hit $35,000
According to Standard Chartered, Ethereum (ETH) could hit $8,000 by 2026. Moreover, the bank anticipates ETH to reach $35,000 eventually.