After this summer the approval of the first spot Bitcoin (BTC) ETF, The market is waiting for the same thing to happen with Ethereum (ETH). Some specialists maintain that the SEC (US Securities and Exchange Commission) will give a favorable ruling in May of this year, while others believe that, on the contrary, it will delay the decision for several years.
Next May 23, The regulatory agency will give its verdict on the Ether ETF proposed by the VanEck company, the first of the seven that were presented. It should be noted, however, that the SEC already delayed several initiatives from companies that expressed their interest in launching an ETF based on the native Ethereum cryptocurrency.
The three upward catalysts for Ethereum
Iñaki ApezteguiaChief Research Officer of Crossing Capital in chat with Ambit, He assured that we must start from the base that Ethereum once again touched US$3,000, maximum that it had not had since April 2022, in full collapse of FTX and Luna.
“Many consider it a possible floor for ETH and several elements are approaching that could be positive for this cryptocurrency,” the expert expanded. “One has to do with updating your network that is working well and the other one Vitalik Buterin -its founder- was offering a speech on artificial intelligence and solutions at the code level” he explained.
Lastly, he spoke of the ETH spot ETF of which he said there is seven applications under evaluation and we will have to wait until May 23 of this year to see if there is progress. “An ETH ETF I think it is a positive catalyst. If approved as the BTCcould have a similar dynamic in the price,” he warned.
In this regard, he recalled that when the Bitcoin spot ETF, first it flew, then it retreated a lot, and the rebound took a month and a half. “Perhaps with Ethereum, If the same thing happens, it would take less time to recover because it has smaller capital,” he said.
Strong rise in Bitcoin: how it impacts the entire crypto market
He financial analyst Santiago Amat He highlighted the very strong increase that Bitcoin had in less than a year, since it went from being worth US$15,600 to US$52,000. “All that is capitalization of the crypto market, and then there is a cascade effect that comes to Ethereum”he highlighted.
“I think Ethereum has a long way to go, however, within the volatility”expressed Amat and expanded: “Beyond the possible Ethereum ETF, the truth is that we already have a Bitcoin ETF that if it does good for the most popular cryptocurrency, it will also boost Ethereum. In addition, then comes the halving and the altseason”.
Halving happens every four years and it is the moment when The blockchain starts issuing half of the BTC each time a block is closed. For its part, the Altseason is the time in which altcoins have a bullish rally.
AmatHowever, he stressed that despite the upward trend in the short term, A period of correction due to profit taking could ensue.
Cryptocurrencies: record market capitalization
Mauricio Novellico-founder of N&W Professional Tradershe highlighted Ambit: “An interesting fact to also take into account is that cryptocurrencies in general once again reached two trillion dollars in market capitalization, so that is also a very good fact for the ecosystem, I see super encouraging ground for this year”.
Source: Ambito
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