According to the latest information, the SEC has begun discussions on S-1 registration for Ethereum ETFs. This signaled potential regulatory progress. Meanwhile, US lawmakers called on the SEC for approval. Amid the controversy, market optimism increased, pushing Ethereum prices higher. QCP Capital predicts that the Ethereum price will exceed $6,000 in anticipation of an Ethereum ETF.
US SEC begins initial talks for spot Ethereum ETF
As you have been following on Kriptokoin.com, the market is closely monitoring the approval process of spot Ethereum ETFs. According to the latest information, the SEC has started negotiations on the S-1 registration for Ethereum ETFs. This has caused a stir in the cryptocurrency market. This is therefore fueling optimism regarding the potential approval of the investment vehicle. Notably, the approval of an Ethereum ETF marks an important milestone for the crypto industry.
According to a new report, the SEC has begun discussions with potential Ethereum ETF issuers regarding their S-1 registration statements. The report stated that a senior member at one issuer hinted that the development is just the beginning. In addition, it noted that the Division of Investment Management was somewhat unprepared for this shift. However, despite the cautious optimism, the source does not expect these early discussions to halt the progress towards an ETF.
Lawmakers put pressure on SEC Chairman Gensler
A bipartisan group of House lawmakers urged SEC Chairman Gary Gensler to approve spot Ethereum ETFs. House Majority Whip Tom Emmer (R-Minn), House Members Josh Gottheimer (D-NJ), Mike Flood (R-Neb) and Willy Nick said the agency should apply the “principles” it applied when approving spot Bitcoin ETFs earlier this year. French Hill, R-Ark, Josh Gottheimer, D-N.J., Mike Flood, R-Neb. and Wiley Nickel, D-N.C. sent a letter to Gensler. In this letter, they highlighted the following points:
The Commission’s actions earlier this year appear to be a natural progression that will not only demonstrate consistency in the Commission’s application of its standards, but also confirm the legal rationale that facilitated the spot Bitcoin ETPs decision.”
3 scenarios for ETH from Matrixport analyst!
Meanwhile, for ETH ETFs to receive approval, the SEC must first approve forms 19b-4, as it did in a comprehensive order for Bitcoin ETFs. Once these forms are approved, S-1 registration statements need to go into effect before trading can begin. Typically, these forms undergo multiple amendments before final approval. Notably, Fidelity’s recent submission of an amended S-1 form has sparked discussions that further changes to S-1s are on the horizon.
Meanwhile, Matrixport co-founder Daniel Yan outlines three potential scenarios and their implications, weighing in on Ethereum ETF approval. Yan expects a sell reaction if only 19-b4 is approved, a “very bullish” sentiment if both 19-b4 and S-1s are approved, and a “very bearish” outlook if 19-b4 is rejected.
Ethereum price forecast from QCP Capital
Amid the euphoria surrounding the potential approval of the Spot Ethereum ETF by the US SEC, optimism in the crypto market has reached new highs. Meanwhile, QCP Capital recently shared its ETH price forecast. QCP Capital predicts that the ETH price will rise strongly following the ETF optimism. Thus, it further reinforced the positive sentiment in the market. QCP emphasized the importance of the upcoming Ethereum ETF decision, highlighting the market’s expectation of significant price movements. With implied volatility rising above 100%, QCP suggests that ETH ETFs are likely to be approved.
The report also highlights recent changes made by major Ethereum ETF issuers in their filings with the SEC. This has further boosted investor confidence as they eagerly await the SEC’s decision on the investment vehicle. Meanwhile, QCP highlights Bitcoin’s significant rally following the SEC approval. In this context, Spot draws a parallel with the approval of Bitcoin ETFs. The firm predicts that Ethereum will experience a similar rally if the ETF approval materializes. Accordingly, it predicts that ETH will potentially increase by 60% to over $6,000.
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