The wait for a US-based spot Ethereum ETF continues, with the SEC delaying decisions on applications from Invesco and Galaxy Digital. While the delay is met with unsurprised sighs from some analysts, the focus now shifts to May 23rd, the deadline set by VanEck for approval. This date becomes a crucial point for Ethereum enthusiasts, as regulatory decisions hold the key to unlocking potential investment opportunities.
SEC’s Delay Tactics: What to Know
The SEC has the legal leeway to postpone rulings under the Securities Exchange Act, giving them the potential to extend the public comment period by up to 90 days. This isn’t the first time they’ve used this option for Ethereum ETFs, recently delaying decisions on applications from Fidelity and BlackRock as well. While these delays are frustrating, they don’t necessarily signal permanent rejection.
Global Ethereum Momentum: Beyond the US: The US may be slow on the uptake, but other markets are embracing Ethereum ETFs. A Chinese asset manager plans to bring a spot Ethereum ETF to Hong Kong, showcasing global interest in the asset.
Also Read: Ethereum ETF: Not a Matter of If, But When – Why the Green Light is Imminent
Dencun Upgrade: A Bright Light on the Horizon
Amidst the regulatory uncertainty, the Ethereum ecosystem itself is buzzing with excitement. The Dencun upgrade, featuring improvements like EIP-4844 for reduced L2 rollup costs, is about to hit the Holesky testnet, paving the way for a potential mainnet launch in March. Industry insiders see Dencun as a major step forward for scalability, security, and network efficiency, solidifying Ethereum’s position as a leading blockchain platform.
Price Predictions: Will ETH Hit $3,500?
Crypto analyst Michael van de Poppe believes the Dencun upgrade will trigger a significant price surge for Ethereum, predicting a rally towards $3,500.
He sees the current market undervaluing ETH’s potential and expects the Ethereum ecosystem to be a major driving force in the coming months.
Market Outlook
At the time of writing, Wednesday, February 7th, 2024, the global cryptocurrency market is experiencing a modest upswing. The total market cap sits at $289.27 billion, representing a positive change of 2.22% over the past 24 hours. Ethereum (ETH), the second-largest crypto by market cap, is mirroring this trend. Its current price is $2,412.26, reflecting a gain of 2.62% in the last day.
This bullish momentum is further fueled by a substantial 24-hour trading volume of $10.59 billion. While the exact details of its maximum supply remain undetermined, ETH’s circulating supply currently stands at 120.18 million coins. Its price reached a high of $2,424.92 earlier today, but also dipped to a low of $2,348.40 within the same 24-hour window, showcasing the continued volatility of the cryptocurrency market.
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