Ether ETFs May Push ETH to $10K by 2025

The approval of spot Ether exchange-traded funds (ETFs) in the United States has the potential to push Ether’s (ETH) price to $10,000. While the process for approval by the United States Securities and Exchange Commission (SEC) could take months, such ETFs could serve as a major catalyst for Ether’s price rise, said Andrey Stoychev, the head of prime brokerage at Nexo. He conveyed this perspective in an interview, predicting that Ether ETFs in the U.S. and similar products in Asia could propel the asset to $10,000 by the end of 2024, aligning its performance closer to Bitcoin’s post-ETF approval.

This optimistic forecast follows a notable price surge in Ether, which appreciated over 21% in the last 24 hours, reaching a two-month high of $3,771 according to CoinMarketCap data. The rally in Ether’s price coincided with reports that the SEC has reconsidered its stance on spot Ether ETFs, possibly influenced by political pressures. The regulatory body has allegedly directed ETF exchanges to update their 19b-4 filings, signaling a potential shift in their approach.

Although the exact timeline for the approval of a spot Ether ETF remains uncertain, the SEC’s recent actions are seen as a positive development. Stoychev speculates that this change in perception may be due to the upcoming U.S. presidential election. He posits that the influence of crypto users in key swing states could be a significant factor prompting the SEC to reconsider its stance on Ether ETFs.

It may not be until 2025 that we see an Ether ETF actually trading in the market. The next critical deadline for the SEC is on May 23, for VanEck’s Ether ETF proposal. Eric Balchunas, a senior ETF analyst at Bloomberg, has increased the approval odds for this proposal to 75%, up from a mere 25%. Still, this increased probability only applies to the 19b-4 filings, which is just one part of the equation.

James Seyffart, another Bloomberg ETF analyst, noted that Ether ETF issuers also need to secure approval for their S-1 filings. In his opinion, while the theoretical 19b-4 approvals might come soon, it could still take weeks or months for the S-1 approvals to come through. This means that a live Ether ETF could be some way off, even if these preliminary hurdles are crossed.

The approval process for VanEck’s filing by the SEC is likely to proceed, but the S-1 filing approvals might be delayed until 2025. Yunus Ozkaya, CEO and founder of the FreeBnk app, expressed his expectation that while the SEC will meet the 19b-4 deadline by May 23rd, it could take until 2025 before anything tradeable becomes available.

Ozkaya believes that when the approvals eventually come through, they will have a significant positive impact on the market, even if the wait for S-1 approvals extends the timeline. This sentiment reflects a broader anticipation in the crypto community for regulatory clarity and product availability.

While there are hurdles and a potentially lengthy timeline before we see a spot Ether ETF trading in the U.S., the recent developments and the increasing likelihood of SEC approval are promising signs. The potential for Ether’s price to reach $10,000 hinges on these regulatory advancements, which could well mirror Bitcoin’s performance following its own ETF approval.

As the SEC approaches critical deadlines and the market watches intently, the next few months will be crucial in determining the future of Ether ETFs and their impact on the cryptocurrency market.