Will Ethereum Hit 10000 in 2022 Following Approval of its Spot ETF

Will Ethereum Hit $10,000 in 2024 Following Approval of Spot ETFs?
Ethereum has seen a 20% increase in value over the past month, largely due to the recent approval of eight spot-based ETFs. The SEC surprised the market with these approvals on May 23, causing Ethereum’s price to skyrocket to nearly $4,000, sparking excitement among traders.
However, despite the initial surge, Ethereum has hit a temporary plateau in the last few weeks as the market remains uncertain and the approved ETFs are yet to be launched. Nevertheless, the applicants have started filing the necessary forms to bring their funds to market, with expectations that their launches could lead to a significant increase in demand and trading volumes, potentially propelling Ethereum to new record highs before the end of the year.
The Story of Spot Ethereum ETFs So Far
Spot-based Ethereum exchange-traded funds date back to April 2021 when the Canadian securities regulator approved the world’s first Ethereum ETF, managed by Purpose Investments. This marked a significant milestone, especially given the historic challenges faced by the SEC in approving similar ETFs for Bitcoin and Ethereum in the United States due to concerns about market manipulation.
However, following regulatory shifts in late 2023, the SEC’s approval of 11 spot Bitcoin ETFs in January 2024 paved the way for Ethereum ETF approvals. The recent green light for the first batch of Ethereum ETFs has reignited optimism in the market, driving Ethereum’s price up from $3,100 to nearly $4,000 within days.
Ethereum’s Price Reaction
Since the initial spike, Ethereum’s price has stabilized around $3,750 as applicants work on filing S-1 registration forms for their ETF launches. BlackRock has already submitted the necessary paperwork for its ETF, indicating a potential arrival by the end of June. Analysts are forecasting significant growth for Ethereum, with some predicting prices as high as $8,000 by the end of the year.
While ultra-bullish predictions should be approached with caution, the recent withdrawal of over $3 billion in ETH from centralized exchanges following the ETF approvals suggests a positive outlook for Ethereum’s performance in the coming months. While $10,000 remains a best-case scenario for 2024, surpassing its current all-time high of $4,878 seems increasingly likely.
The Future of Crypto Amid ETF Approvals
The approval of Ethereum ETFs signifies a major milestone for the crypto industry, providing increased legitimacy and regulatory clarity. While there are doubts about whether ETFs for other altcoins will follow suit, the broader implications of these approvals are significant. They position Ethereum as a commodity rather than a security, attracting mainstream financial institutions and directing more capital towards the development of blockchain technology.
Overall, the approval of Ethereum ETFs marks a crucial step towards mainstream adoption of cryptocurrencies. However, investors should exercise caution given the high-risk nature of crypto investments. This article serves for informational purposes only and does not constitute investment advice.