- The SEC’s Ethereum ETF comment period has drawn mixed reactions
- Analysts were divided on the impact of ETF on the price of ETH and were unsure about the SEC’s decision
Recently, the US Securities and Exchange Commission (SEC) initiated a 21-day public comment period for proposed Ethereum transactions. [ETH] ETF submission changes linked to Bitwise, Fidelity and Grayscale.
While this development sparked excitement among some crypto enthusiasts, industry analysts James Seyffart downplayed its significance, calling it “standard procedure.”
ETH price expectations amid ETF speculation
Amid these developments, it is worth noting that the price of ETH fell 14.48% over the month, with the altcoin trading at $3,220.95 at the time of writing. However, despite this downturn, several executives expect a significant increase in the crypto’s value, especially after Bitcoin’s halving.
Some researchers even suggest that a potential rejection of an ETF may not have a significant impact on its price.
Hashkey Capital’s head of research Jupiter Zheng recently commented on this:
“If the ETF is rejected, it won’t be as bearish because the market isn’t pricing in it yet and we still have Bitcoin ETFs as an entry point for traditional funds.”
Zheng additionally mentioned that the approval of a spot Ether ETF with staking could lead to an increase in short liquidations, causing prices to rise.
What are the chances now?
However, not everyone agrees, even after recent developments like the Bitwise ETH ETF filing. Senior Bloomberg ETF analyst Eric Balchunas still maintains that approval chances for an Ethereum ETF in May are low.
What impact will not approving have on ETH prices? Drawing parallels between Ethereum’s current price chart and its behavior before Bitcoin’s previous halving in May 2020 Jelle noted,
“Bitcoin’s latest halving was $ETH’s sign to start running. Is this time different? I do not think so.”
Zheng even predicts an upcoming bullish trend for Ethereum.
With the SEC investigating whether or not ETH should be classified as a security, investor confidence has dropped recently. The SEC’s decision, which is due on May 23, will have a major impact on Ether ETF applications and may impact the future of ETH.