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What are the next steps? From Investing.com
Investing.com – While final confirmation is still needed before spot Exchange Traded Funds (ETFs) can begin trading, the market sees a strong likelihood of this happening soon, with expectations set for the next few weeks.
Ana de Mattos, a technical analyst and contributing trader at Ripio, notes that “even though they have been approved, trading of these ETFs is not yet expected because the SEC must approve the S-1 documents, which detail the management of the funds” , explains Mattos, who reminds us that these forms are still being reviewed.
Last week, the US Securities and Exchange Commission (SEC) required exchanges to amend their filings and approved the forms on Thursday the 23rd. “Markets await the SEC’s final confirmation on asset manager forms, which could come soon and would represent the last hurdle before these products are approved for trading,” emphasizes Manuel Villegas, digital asset analyst at Julius Baer.
The market believes that this trade is almost certain in the short term, as can be observed in some indicators, the Swiss group cites, including the discount on Grayscale’s closed Ethereum Trust and its net asset value, which has fallen from around 20% to 1% in the last few days.
“At the same time, options markets are showing a clear bias in Ethereum options across all expiries. In reality, for every put option there are almost two call options,” adds Julius Baer.
While investors benefit from closer monitoring of spot prices for these products, Julius Baer believes approval is largely a given.
Analysts expect not only a rise in Ethereum, which has already increased by more than 20% in May, but also in other projects related to this technology. According to Mattos, Ethereum continues to face strong buying pressure, with resistance at $4,565 if the flow continues. Beyond this range, the analyst believes that the cryptocurrency could surpass its all-time high and reach the first Fibonacci expansion level at $5,454, with short- and medium-term supports at $3,200 and $2,980.
As of 4:30 pm ET, Ethereum was down 1.03% at $3,837.43.
American crypto landscape
Julius Baer says that a possible reason for the acceleration of this approval process is the proximity of the US elections and recalls that former president and candidate Donald Trump supports several projects related to cryptocurrencies, while Biden should decide whether to sign 21st Century Financial Inclusion and Technology Act, passed by the Republican Party and much of the Democratic Party. “The legislation is expected to promote clarity on the regulation of digital assets, with the aim of providing a framework for service providers,” Julius Baer added.
Ethereum’s moment
Ethereum is on the verge of reaching its “best time,” according to Bitso crypto analyst Daniel González. Among the positive factors is the increased adoption of technologies enabled by the Ethereum network, which play a crucial role in the development of Web3. Furthermore, the expansion of smart contracts, applications that automate transactions and financial inclusion geared towards decentralized payments are also among the driving factors, highlighting the possibilities of the technology.
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