- SEC’s Ethereum ETF Comment Period Produced Mixed Reactions
- Analysts are divided on the impact of ETFs on ETH price, and SEC decision is unclear
Recently, the U.S. Securities and Exchange Commission (SEC) opened a 21-day public comment period on the Ethereum proposal. [ETH] Proposed amendments to ETF filings related to Bitwise, Fidelity, and Grayscale.
While this development sparked enthusiasm among some crypto enthusiasts, industry analysts say james seifert downplayed its importance and called it “standard procedure.”
ETH price prediction in ETF speculation
Amidst these developments, it is worth noting that the price of ETH has fallen by 14.48% over the month, with the altcoin trading at $3,220.95 at the time of writing. However, despite this downturn, various executives expect the value of the cryptocurrency to rise significantly, especially after the Bitcoin halving.
In fact, some researchers have suggested that the possibility of an ETF rejection may not have a significant impact on prices.
Regarding the same, Jupiter Zheng, head of research at Hashkey Capital, recently said:
“If the ETF were to be rejected, it wouldn’t be too bearish because the market hasn’t priced it in yet, and we still have Bitcoin ETFs as an entry point for traditional funds.”
Zheng further said that the approval of Spot Ether ETFs with staking could lead to an increase in short-term liquidations, which could result in higher prices.
What is the probability now?
However, not everyone agrees, even after recent developments like the Bitwise ETH ETF filing. In fact, Bloomberg ETF senior analyst Eric Balchunas maintains that the chances of Ethereum ETF approval in May remain slim.
So how will a disapproval affect ETH price? Traders draw parallels between Ethereum's current price chart and its movements before the last Bitcoin halving in May 2020 gel I got it,
“The last Bitcoin halving was a sign that $ETH was starting to get serious. Will it be different this time? I don't think so.”
In fact, Zheng also predicts a bullish trend for Ethereum in the future.
Investor confidence has declined recently as the SEC investigates whether ETH should be classified as a security. The SEC decision, which will be announced by May 23rd, will have a major impact on Ether ETF applications and could impact the future of ETH.
