This week saw a downturn in the crypto market, with Bitcoin dropping 5.4% to $61,680 and Ethereum falling by 4.4% to $3,382. Altcoins also had mixed results, with Cardano rising 1.3%, Solana increasing by 0.3%, Dogecoin jumping 0.2%, while XRP, Shiba Inu, and BNB all experiencing losses.
In a positive development for the crypto industry, SEC Chair Gary Gensler expressed confidence in the approval process for spot Ether ETFs during the Bloomberg Investment Summit. While he did not provide a specific timeline, Gensler mentioned that the process was progressing smoothly, with asset managers needing to make full disclosures for registration statements to become effective.
Approval of spot Ether ETFs in the U.S. is expected this summer, following initial filings approved by the SEC last month. This milestone would help legitimize Ethereum as an alternative asset class, potentially attracting significant investments from both retail and institutional investors. Analysts have varying opinions on how much inflow Ether ETFs might attract, with projections ranging from $15 billion to $35 billion within 18 months.
Bitwise Chief Investment Officer Matt Hougan predicts $15 billion in net inflows for Ether spot ETFs based on the success of Bitcoin spot ETFs. However, JPMorgan and Bernstein analysts believe that Ether ETFs may not see as much demand as Bitcoin ETFs due to factors like the absence of a staking feature in the ETF and Bitcoin’s stronger “safe haven” appeal.
Overall, the approval of Ether spot ETFs would mark a significant milestone for the crypto market and Ethereum in particular. Despite differing opinions from analysts on the potential demand for Ether ETFs, the overall sentiment remains positive for the future growth and adoption of Ethereum as a legitimate investment option. Investors will be closely watching for further developments in the approval process and the impact it may have on the broader crypto market.
