- Arthur Cheong of DeFiance Capital predicts Ether will reach $4,500 before the launch of spot Ether ETFs.
- Recent SEC approval of 19b-4 filings for eight Ether ETFs marks a significant regulatory milestone.
- ETFs are expected to act as a major catalyst, potentially pushing Ether’s price even higher.
Arthur Cheong, CEO of DeFiance Capital, has made a bold prediction on social media that the price of Ether could soar to $4,500 before the trading of the first spot Ether exchange-traded funds (ETFs) begins. This represents a potential 15% increase from its current price, which was recorded at $3,903.
Regulatory Developments Pave the Way
The optimism stems from the U.S. Securities and Exchange Commission’s (SEC) recent approval on May 23 of the 19b-4 filings from eight Ether ETF issuers. This approval is a crucial step in allowing these funds to be listed and traded on various exchanges. Among the approved are well-known financial entities such as VanEck, BlackRock, and Fidelity.
While this approval is significant, these ETF issuers still await the green light on their S-1 filings, a process that might take additional weeks to months. James Seyffart, a Bloomberg ETF analyst, shared his insights online, suggesting that while the timeline for S-1 approvals remains uncertain, their eventual approval is likely just a matter of time.
Market Movements and Speculations
The potential for ETFs to drive Ether’s price up follows historical precedents set by similar financial products in other markets. Ether’s current trajectory has been promising, marked by a 2.57% increase in just the past 24 hours.
The next major milestones for Ether are the resistance levels at $4,000 and $4,100. Overcoming these could trigger significant market movements, potentially liquidating $500 million worth of leveraged short positions across exchanges.
A Catalyst for Further Growth
Andrey Stoychev from Nexo, sharing his perspective, highlighted that the introduction of Ether ETFs not only in the U.S. but also in Asia could significantly impact Ether’s valuation. He projected that Ether could reach as high as $10,000 by the end of 2024, aligning its performance closely with Bitcoin’s post-ETF surge.
