Leading altcoin Ethereum surpassed $3,000 for the first time since 2022. Following the recent launch of spot Bitcoin ETFs, attention is turning to the possibility of a spot Ethereum ETF in the US.
The leading altcoin surpassed 3 thousand dollars after a long time
The price of Ether broke above $3,000 for the first time in two years on Tuesday amid speculation that spot Ethereum ETFs could be approved in the US as early as May. The leading altcoin reached $3,003.40 before pulling back. At press time, ETH is changing hands at $2,931. Thus, ETH is up 12% on its weekly chart and 30% year-to-date.
Bitcoin also reached its highest level of the year today at $52,908. It also gained 6% last week amid a broader crypto market rally that saw the GMCI 30 Index rise from 107.7 to 116.
Is a spot Ethereum ETF next?
cryptokoin.comAs you follow from , spot Bitcoin ETFs successfully entered the market in January. Following this development, attention turned to another narrative for crypto markets. This is the possibility of a spot Ethereum ETF in the US. Major firms such as Fidelity, BlackRock and Franklin Templeton have applied for a spot ETH ETF. These applications took place in the last few months.
Increasing speculation on the potential approval of such products this year has supported the ETH price. Thus, the leading altcoin outperformed Bitcoin in 2024. Bloomberg ETF analyst Eric Balchunas recently suggested that there is a 70% chance of approval by May 23, the deadline for the Securities and Exchange Commission to rule on the initial spot Ethereum ETF application by Ark and 21Shares.
Is Ethereum going to $4k?
Standard Chartered also shares Eric Balchunas’ view. The bank is considering Bitcoin to mimic its performance before spot ETF approval. In this case, he predicts a potential $4,000 target for ETH. However, investment bank TD Cowen does not see much likelihood of the SEC approving spot ETH ETFs. He says approval is unlikely, at least “any time soon.” JPMorgan sees no more than a 50% chance of spot ETH ETF approval until May.
Obstacle to spot ETF: SEC Chairman Gary Gensler
In January, SEC Chairman Gary Gensler said the agency’s approval of spot Bitcoin ETFs was limited to a single cryptocurrency. He also stated that it “should not be read as anything more than that.”
Gensler’s stance that cryptocurrencies other than Bitcoin are securities is known to everyone. Considering this, further uncertainty remains surrounding spot Ethereum ETF approvals. However, Gensler’s predecessor, Jay Clayton, once mentioned that a small number of tokens may no longer be considered securities if they become widely decentralized, and the SEC’s former Director of Corporate Finance, William Hinman, also argued in 2018 that, given its decentralized nature, He said that Ether is not a security.
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