He cryptocurrency market shows remarkable euphoria. Bitcoin (BTC) has consolidated its recent gains and remains near $69,700, while Ethereum (ETH) has risen to $3,800, remaining at levels seen in early March.
In the field of ‘altcoins’, losses predominate. Cryptocurrencies like Binance Coin (BNB), Solarium (SUN) and XRP have fallen more than 1% in the last 24 hours, while others like Cardanor (ADA) and Dogecoin (DOGE) have suffered more moderate declines. In contrast, Toncoin (TON) has stood out with an increase of close to 3%.
This situation comes just hours before the United States Securities and Exchange Commission (SEC) announces its decision on spot ETH exchange-traded funds (ETFs). This Thursday, the regulator must decide whether to approve, reject or postpone the verdict on VanEck’s proposed ETF. As reported in Bolsamanía, this event has been a significant catalyst for the market, especially after Bloomberg analysts increased the probability of approval of these investment products for May.
Optimism has increased after other applicants such as BlackRock, Grayscale and Fidelity to update Forms 19b-4, removing staking provisions‘, which could have been a regulatory obstacle. ‘Staking’ involves locking cryptocurrencies to sustain the functioning of a blockchain in exchange for rewards, considered passive income by crypto operators.
The Ethereum ETF
Nate Geraci, co-founder of the ETF Institute, notes that “it is technically possible for the SEC to approve 19b-4s first and then delay approval of S-1s (registration statements).” Therefore, even a possible rejection by the SEC could have a positive impact on cryptoassets, as the approval of Forms 19b-4 could indicate a favorable stance from the regulator.
An eventual approval is expected to significantly boost the prices of Ethereum and other cryptocurrencies, including Bitcoin, by opening a door to institutional capital. Two months after the approval of spot Bitcoin ETFs, the cryptocurrency hit new all-time highs. However, eToro experts believe that an approval might not be as crucial as you think.
It’s important to remember that the SEC has been investigating whether ETH is a security, especially after the Ethereum blockchain switched from a proof-of-work mechanism to a proof-of-stake mechanism. -stake’). If the SEC determines that ETH is a security, it could reject ETH spot ETF applications. Experts are divided: some believe it is difficult to justify ETH being a security, while others, such as JP Morgan, are more cautious.
From a technical perspective, César Nuez, Bolsamanía analyst, points out that Bitcoin continues in a lateral range in the last three months. The recent rallies have brought it closer to the key level of $74,415. “If it breaks this level, it could go into a free rise and go towards $80,000,” he says.
Regarding Ethereum, James Harte, an analyst at TickMill Group, believes that the largest ‘altcoin’ on the market could exceed $4,000 in the coming days if the current trend continues.
Source: Ambito
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