Investing.com – Final confirmation is still required before spot exchange-traded funds (ETFs) can begin trading, but the market is expecting this to happen soon, building anticipation in the coming weeks.
“Although approved, these ETFs are not yet scheduled to trade because the SEC needs to approve the S-1 filings, which detail the operations of the funds,” said Ana de Matos, a technical analyst and trader who works with Lipio, noting that those documents are still under review.
Last week, the U.S. Securities and Exchange Commission (SEC) asked the exchange to amend its filings, and approved the documents on Thursday, the 23rd. “The market is awaiting the SEC's final approval of the asset manager's documents, which could happen soon and will be the last hurdle before these products are approved for trading,” noted Manuel Villegas, digital assets analyst at Julius Baer.
The Swiss group said the market sees the deal as a near-certainty in the short term, as evidenced by several indicators, including the discount on Grayscale’s closed Ethereum Trust and its net asset value, which has fallen from around 20% to 1% in recent days.
“At the same time, the options market is showing a clear bias towards Ethereum options across all maturities. In fact, there are nearly two call options for every one put option,” he added.
Investors have benefited from tracking the spot prices of these commodities more closely, but Julius Baer believes approval is largely priced in.
The analyst expects not only Ethereum, which has already risen by more than 20% in May, to rise, but also other projects related to the technology. According to Matos, Ethereum continues to face strong buying pressure, which will face resistance at $4,565 if it continues on this path. Above this range, the analyst believes the cryptocurrency could surpass its all-time high and reach the first Fib extension level at $5,454, with short- and medium-term support at $3,200 and $2,980.
As of 4:30 PM ET, Ethereum was down 1.03% to $3,837.43.
The American Cryptocurrency Scenario
Julius Baer cited the proximity of the US elections as a possible reason for the accelerated approval process, with former president and candidate Donald Trump endorsing various cryptocurrency-related projects, and Biden expected to decide whether to sign the 21st Century Financial Inclusion and Technology Act, approved by a majority of Republicans and Democrats. “The bill aims to bring greater clarity to digital asset regulation and provide a framework for service providers,” Julius Baer added.
Ethereum Moment
According to Daniel Gonzalez, crypto analyst at Bitso, Ethereum is on the brink of a “big moment.” One positive driver is the growing adoption of the technology enabled by the Ethereum network, which plays a key role in the development of Web3. Additionally, growing financial inclusion towards smart contracts, applications that automate transactions, and decentralized payments are also drivers, highlighting the potential of the technology.
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