The US Securities and Exchange Commission (SEC) announced yesterday morning that it has approved the 19b-4 documents for multiple Ethereum spot ETFs. This article compiles the predictions of seven market observers and cryptocurrency industry experts regarding the post-market outlook for cryptocurrencies. The article, written by Trista Kelley, has been translated, compiled, and edited by PANews.
Summary:
SEC Gives Green Light to Ethereum Spot ETF! Experts Analyze: ETH and Most Cryptocurrencies “Are Not Securities” and Finally Break Free.
Background:
After SEC’s Approval of Ethereum Spot ETF, Can Commissioners Gensler and Others Intervene in the Review?
Table of Contents:
Digital Asset Management Company: Galaxy Digital
Ethereum Core Organization: Consensys
Financial Management Giant: Bitwise
Blockchain Infrastructure Platform: Swarm
Data Analysis Platform: Kaiko
Research and Analysis Company: Bernstein
In recent days, the wind has drastically changed for Ethereum spot ETFs, attracting high attention from both the market and regulatory authorities. Based on the optimism surrounding the approval of an Ethereum spot ETF by the United States, Ethereum’s price has surged this week and is currently at $3,807.
While the reasons behind the sudden change in sentiment are still disputed, market observers and cryptocurrency industry experts generally believe that regulatory recognition will have varying degrees of impact on Ethereum and other cryptocurrencies. Here are the views of seven industry experts on this matter and its subsequent effects.
Digital Asset Management Company: Galaxy Digital
Mike Novogratz, CEO of Galaxy Digital, stated in an interview with CNBC that the “wide-ranging” shift that occurred in Washington within the past 24 hours has disrupted the Ethereum spot ETF game. He believes that if the change by the US Securities and Exchange Commission (SEC) is motivated by politics, then “this will be a big shift.” Furthermore, he mentioned that with Trump leading Biden in polls, the Cryptocurrency Super PAC raised over $150 million to support candidates in the industry, which weakens the Democrats’ aversion to cryptocurrencies. Novogratz added:
Ethereum Core Organization: Consensys
Joseph Lubin, co-founder of Ethereum and founder of cryptocurrency infrastructure company Consensys, stated that Ethereum is expected to experience “massive demand,” which could lead to supply shortages and drive up its price. Lubin told the media that institutions that have been involved with Bitcoin ETFs “would likely want to diversify and invest in the second approved ETF.” He stated that “buying Ethereum through an ETF will create significant natural, pent-up pressure.” In addition, he noted that compared to the approval of a Bitcoin spot ETF in January, the supply to meet this demand will be reduced. Regarding Bitcoin, authorized participants (i.e., companies that purchase Bitcoin on behalf of the ETF by signing contracts when new shares are created) can easily buy idle Bitcoin on exchanges or through over-the-counter trading partners. However, on-chain data shows that over 27% of Ethereum has already been staked, meaning it is locked in contracts and earning rewards for its owners. Lubin pointed out:
Financial Management Giant: Bitwise
Matt Hougan, CIO of financial management giant Bitwise, wrote in a blog post this week:
However, Hougan stated that the catalyst for sudden optimism about the Ethereum spot ETF is not just limited to this. “Something big happened in Washington: a bipartisan group of senators and representatives passed the first-ever legislation supporting cryptocurrency in Washington’s history.” He mentioned a bill that abolishes SEC SAB 121 policy, which imposed strict rules on cryptocurrency custody. Hougan added:
Blockchain Infrastructure Platform: Swarm
Timo Lehes, co-founder of blockchain infrastructure platform Swarm, believes that once the Ethereum spot ETF is approved, “capital will flow in massively” to Ethereum.
Data Analysis Platform: Kaiko
Adam McCarthy, an analyst at data analysis platform Kaiko, stated that options traders who flocked around bullish options are now seeking higher returns, but investors should exercise caution. He said:
He recommended paying attention to the ETHE product from Grayscale, which has a value of $9 billion:
Research and Analysis Company: Bernstein
According to estimates by analysts Gautam Chhugani and Mahika Sapra from research and analysis company Bernstein, the approval of an Ethereum spot ETF will drive Ethereum’s price up by approximately 75%, reaching a maximum of $6,600.
They pointed out that the SEC approved a similar Bitcoin spot ETF product in January, and three months later, this event stimulated a price increase of approximately 75% for Bitcoin, reaching a new all-time high of $73,000. Chhugani and Sapra stated in a report this week, “We expect a similar price trend for ETH.”
It is worth noting that in November 2021, Ethereum reached a record high of $4,878. If it can reach $6,600, Ethereum’s price will once again surpass its previous all-time high.
Further Reading:
What is an Ethereum Spot ETF? Analysis of Differences with Futures, Investment Methods, Advantages and Disadvantages, Issuance Methods, and a Complete Analysis. 
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