The price of Ethereum rose more than 12% in the last 24 hours.
Ethereum woke up and rose more than 10%: what’s behind it?
According to some experts The strong rise in the last hours of Ethereum had its correlation with the statements of Eric Balchunasone of the most recognized specialists in investment funds worldwide, who announced through a publication on the social network X that ether ETFs in the United States are getting closer.
Specifically this May 20, 2024, Bloomberg Intelligence senior exchange-traded fund (ETF) analyst Eric Balchunas reported that he and his colleague James Seyffart had raised their expectations for the approval of an Ethereum ETF based on spot operations.
“Update: [James Seyffart] and I are increasing our Spot Ether ETF approval odds to 75% (up from 25%)hearing rumors this afternoon that the SEC could be doing a 180 degree turn on this (increasingly political issue),” Balchunas said.
These ETFs (unlike futures ETFs) are backed by the underlying asset, in this case, cryptocurrency. This means that if there is high buying pressure for these financial products, direct demand for ether will increase.
The companies that manage the ETFs must go out into the market to acquire ETH with which to back the funds that will later be listed on the stock exchange.. That, due to a simple law of supply and demand, ends up being bullish for the price of the cryptocurrency.
Source: Ambito
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