Journalist
Posted:
- ETH ETF approvals are now closer than ever following the SEC’s recognition of recent applications.
- ETH started to see a resurgence in demand after falling below $1,600.
ETFs have been a major topic of discussion in recent months, mostly revolving around Bitcoin [BTC]. This time Ethereum [ETH] is the subject of the latest ETF-related development.
How much are 1,10,100 ETHs worth today?
The SEC has reportedly acknowledged the review of two ETF applications related to Ethereum. The ETF applications in question were submitted by Ark Invest and VanEck.
The recognition is not necessarily an approval, but it does highlight a positive step forward, as opposed to a rejection by the regulatory body.
TRENDING: SEC Acknowledges Two Spot Assessment #Ethereum ETF applications pic.twitter.com/HYf1jbY2VN
— LunarCrush Social Trends (@LunarCrush) September 22, 2023
The above outcome means that there is a significant chance that the two ETH ETF applications will be approved soon. There will be a 45-day period during which members of the public can give their views on the ETFs.
While this does not confirm that the ETFs will be approved, it does indicate a potential positive outcome.
An endorsement of the Ethereum ETFs would open the floodgates of institutional liquidity to the cryptocurrency. The subsequent demand could potentially facilitate a bullish outcome. The ETH ETFs come at a time when the cryptocurrency is struggling to secure bullish momentum.
Assessment of the prevailing level of demand for ETH
The ETF-related development indicates that the cryptocurrency is poised to experience a wave of bullish demand by the end of 2023. However, these expectations are far from reality and have yet to be approved.
In other words: approval does not yet fall within the domain of certainty.
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Let’s take a look at the demand for ETH. The token had begun to experience greater demand than selling pressure at the time of writing. A review of ETH exchange flows showed that outflows exceeded inflows over the past 24 hours.
However, currency flows have fallen significantly, reflecting the lack of excitement in the market.
Source: CryptoQuant
The exchange flows suggest that the bulls could attempt a gradual takeover. However, these were not the only figures pointing towards such an outcome.
Notably, Ethereum’s active addresses recently recorded an increase over the past five days following the previous dip. The same applies to the derivatives segment, as the level of open interest rises to a monthly high.
Source: CryptoQuant
Based on the above findings, it appears that demand for ETH is making a comeback. This has been the case for the past three months whenever the price has fallen below $16,000.