Live Markets: Ether surges ahead of US spot ETF decision

Grayscale Ethereum Trust (ETH)

21/05/2024 17:31

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    ETHER SURGES AHEAD OF U.S. SPOT ETF DECISION
    Bets over U.S. spot ether exchange-traded-funds (ETFs)
approval has provided a much needed shot in the arm for the no.
2 cryptocurrency, which is yet to surpass its 2021 record high. 
    
    The U.S. securities regulator on Monday asked Nasdaq, CBOE
and NYSE to fine-tune their applications to list spot ether
ETFs, signaling the agency may be poised to approve the filings,
four people familiar with the process told Reuters.
    Ether has jumped 21% since Sunday to $3,739. It is 23% below
its 2021 peak of $4,867.60. 
    Grayscale Ethereum Trust  ETHE.PK  rose 14.7% in OTC market.
The asset manager's proposal to convert the fund into a spot
ether ETF is still pending.
    "The ETH ETF flows will be as or more impactful for the ETH
price than ETF flows have been for the BTC price ... once
investors realise ETH is the 'Big Tech' of digital assets they
are likely to embrace it," wrote Geoff Kendrick, head of digital
assets research at Standard Chartered in a research note.
    The SEC's decision on whether to approve ether ETFs provided
by VanEck and ARK Investments/21Shares is expected by the end of
this week.
    Kendrick reiterated his forecast that, if approved, the
ether ETFs would attract $15 billion-$45 billion inflows in the
first 12 months.
    So far, all U.S. spot bitcoin ETFs have attracted $12.9
billion in cumulative inflows since they began trading in
January following a landmark approval for the crypto industry.
    Standard Chartered expects ether to hit $8,000 by year-end,
which is a 114% upside from current level, and $14,000 by
year-end 2025.
    "An ETH ETF approval will further legitimise the sector and
therefore be BTC positive as well," Kendrick  added.
    Including Monday's surge, bitcoin is up 9% at $72,119,
closing in on its all-time high of $73,803 from March. 

    (Medha Singh)
    *****


    
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