Benzinga - The price of Ethereum (CRYPTO: ETH) could soar by 60% following the approval of the first-ever Ethereum spot exchange-traded funds by U.S. regulators, according to a leading crypto trading firm.
What Happened: The Securities and Exchange Commission has approved the first Ethereum spot ETFs in the U.S. This decision could lead to a significant surge in the value of the second-largest cryptocurrency, according to a post on Telegram from the crypto trading firm QCP Capital.
QCP Capital predicted a 60% increase in the value of Ethereum after the ETF approval. The news of the potential approval has already caused Ethereum’s price to surge by nearly 20% since Monday.
“With Friday implied volatility above 100%, the market is expecting fireworks,” QCP wrote.
See Also: Bonk, Pepe Outstrip Gains Of Bitcoin, Ethereum Amid Searing Hot Rally — Beat Biggies Dogecoin And Shiba Inu In Trading Volumes
QCP Capital also pointed out that the approval of Bitcoin (CRYPTO: BTC) ETFs in January led to a significant surge in Bitcoin’s value. Since then, Bitcoin has reached an all-time high of over $73,000. This has also resulted in a substantial increase in Ethereum purchases, with CryptoQuant data showing an 85% rise in Ethereum taker buy volume since May 1.
Why It Matters: The potential approval of Ethereum ETFs by the SEC could have a significant impact on the cryptocurrency market. The approval of Ethereum ETFs would open the door for mainstream investors to access the cryptocurrency, potentially leading to a surge in its value. This development could also affect other cryptocurrencies, such as Solana, which may find it harder to outperform Ethereum after the ETF approval.
Moreover, the potential approval of Ethereum ETFs could have political implications. As Cathie Wood predicted, crypto could be a significant issue in the 2024 White House race. The approval of Ethereum ETFs could further solidify the importance of crypto in the political landscape.
Additionally, the potential approval of Ethereum ETFs could bring back the “animal spirits” to the crypto market, as predicted by a crypto trader.
Price Action: Ether is trading at $3,672, down nearly 3% in the last 24 hours, however, the coin is up nearly 20% this week and 56.08% up year to date.
Read Next: Bitcoin, Ethereum, Dogecoin Sink Over Inflation Concern In Fed Minutes: Analyst Says Odds ‘In Favor’ Of King Crypto Bulls
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.