- SEC’s Ethereum ETF comments period has stirred mixed reactions
- Analysts split on ETF’s impact on ETH’s price, uncertain about SEC decision
Recently, the U.S Securities and Exchange Commission (SEC) initiated a 21-day public comments period for proposed Ethereum [ETH] ETF filing amendments tied to Bitwise, Fidelity, and Grayscale.
While this development sparked enthusiasm among some crypto-enthusiasts, industry analyst James Seyffart downplayed its significance, referring to it as “standard procedure.”
ETH price expectations amid ETF speculations
In the middle of these developments, it is worth noting that ETH’s price fell by 14.48% over the month, with the altcoin trading at $3,220.95 at press time. Despite this downturn, however, various execs anticipate a significant uptick in the crypto’s value, especially after Bitcoin’s halving.
In fact, some researchers are also suggesting that a possible denial of an ETF may not have a significant impact on the price.
Remarking on the same, Hashkey Capital’s Head of Research Jupiter Zheng, recently noted,
“If the ETF is denied, it will not be that bearish, as the market is not pricing in it yet, and we still have Bitcoin ETFs as the entrance for traditional funds.”
Zheng additionally mentioned that the approval of a spot Ether ETF with staking could lead to an increase in short liquidations, thus driving prices higher.
What are the odds now?
Not everyone is in agreement though, even after recent developments like the Bitwise ETH ETF filing. In fact, Senior Bloomberg ETF analyst Eric Balchunas still maintains there are low approval odds for an Ethereum ETF in May.
What kind of impact will non-approval have on ETH prices though? Drawing parallels between Ethereum’s current price chart and its behavior before the previous Bitcoin halving in May 2020 Trader Jelle noted,
“The last Bitcoin halving was $ETH’s sign to start running hard. Is this time different? I don’t think so.”
In fact, Zheng is also predicting an upcoming bullish trend for Ethereum.
With the SEC probing whether ETH should be classified as a security or not, investor confidence has fallen recently. The SEC’s decision, due by 23 May, will heavily influence Ether ETF applications, potentially impacting ETH’s future.
