The cryptocurrency community is buzzing with anticipation as the SEC accelerates its review of Spot Ethereum ETFs. The approval of these ETFs could have a significant impact on Ethereum and the broader crypto market.
In May, the market anticipated the rejection of the Ethereum ETF and feared that Ethereum would be classified as a security. However, recent speculation about approval has changed the outlook. The price of Bitcoin rose above $70,000, and the price of Ethereum rose by double digits to over $3,500.
Bloomberg analysts Eric Balchunas and James Seifert raised their estimate of the probability of Ethereum ETF approval from 25% to 75%. The boost reflects growing optimism that regulatory approval is near.
Understanding the impact on Ethereum price
The approval of the Ethereum ETF could have a significant impact on the price of ETH. Bitcoin's market capitalization is $1.3 trillion, while Ethereum's market cap is $376 billion, and Ethereum's price is more likely to rise. Additionally, the supply of ETH available on exchanges is at an all-time low, at just 9.9% of the total available supply.
Unlike Bitcoin, Ethereum does not have miners adding to its supply. Since moving to a proof-of-stake mechanism, Ethereum has been deflationary, further reducing its supply. Many holders stake, farm, use ETH as collateral, or engage in decentralized finance (DeFi) activities, which limits the available supply.
Supply issues in focus
Since the supply of ETH is limited, even a small increase in demand from traditional finance (TradFi) investors could lead to a significant price increase. This scarcity means that inflows into Ethereum can have a significant impact on the price.
The altcoin market is attracting attention again!
The approval of the Ethereum ETF and the rise in ETH price could trigger a big rally in the altcoin market. This development is expected to lead to significant gains in cryptocurrencies such as Solana, Avalanche, and various layer 2 solutions.
The cryptocurrency market is potentially on the verge of a transformational moment.Approval of Ethereum ETF could reshape everything and bring new growth and opportunities
Also read: Ethereum soars over 20% as spot ETF approval round looms in market: Is a new ATH on the horizon?
How much do you think the price of Ethereum will rise if the ETF is approved? Let us know your predictions!
