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The approval of US Ethereum spot exchange-traded funds (ETFs) could improve Ethereum's market valuation. However, even if these ETFs are rejected, it might just be a hindrance rather than a hindrance, suggested Jupiter Zheng, head of research at HashKey Capital.
“If the ETF is rejected, it will not be so bearish, because the market is not yet pricing it in, and we still have Bitcoin ETFs as an entry for traditional funds,” Zheng said Cointelegraph earlier this month.
Zheng also expressed optimism about the potential bullish effect of an approved ETF, especially one that includes staking, which could trigger a wave of liquidations in the short term and push the price of Ethereum further.
The Securities and Exchange Commission (SEC) is expected to make a decision on Ethereum spot ETFs within the next month. Unlike the situation with spot Bitcoin ETFs, where progress reports were abundant, the current atmosphere around Ethereum ETFs is less optimistic.
Bloomberg ETF analyst Eric Balchunas reduced the probability of approval at 35%. Similarly, analysts at Barron's and JPMorgan remain skeptical due to the SEC's lack of engagement.
VanEck, one of the Ethereum fund's one-time issuers, said in a recent interview with CNBC that the SEC's response could be an outright rejection.
The chances are low, but the Ethereum ETF spot approval may not be the only source of momentum in the markets during this period. Prominent crypto investor Jelle believes that a bullish period for Ethereum is yet to come.
According to him, there is a similar price trend in Ether's chart leading up to the recent Bitcoin halving on April 20, 2024, compared to that before the halving in May 2020.
The last #Bitcoin the halving was $ETHThis is a sign to start running hard.
Is this time different? I do not think so. pic.twitter.com/fGIiGYufe0
– Jelle (@CryptoJelleNL) April 4, 2024
In 2020, the price of Ether was around $210 before the halving, then rose to $433 on August 14, an increase of 106% according to data from CoinMarketCap. Jelle sees this historical trend as a potential indicator of a further increase in the price of ETH after the recent halving.
While the fate of Ethereum spot ETFs remains speculative in the United States, in Hong Kong such offerings are ready for trading.
Earlier this month, Hong Kong's securities watchdog gave the green light to Bitcoin and Ethereum ETF applications from four asset managers, including HashKey Capital, Bosera Capital, Harvest Global and China Asset Management.
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