Bitcoin and Ether Prices Surge After SEC Approves ETFs: What’s Next?
In a groundbreaking decision by the Securities and Exchange Commission (SEC), eight exchange-traded funds that directly invest in Ether (ETH-USD) have been approved, leading to a surge in Bitcoin (BTC-USD) prices. Bitcoin is set to rise by 2.8% on a weekly basis, as investors react to the news of the ETF approvals.
The approval of these ETFs comes as a surprise to the market, with many not expecting it until Monday evening. The approval has sparked optimism among investors, with Lucy Hu, Senior Analyst at Metalpha, stating that the approval has led to a rapid recovery in Ether prices, erasing losses from earlier in the year.
The SEC approved applications from Nasdaq, Intercontinental Exchange’s NYSE, Cboe Global Markets, and five other entities to list exchange-traded funds that invest directly in Ether. However, these ETFs still require a separate approval from the SEC before they can go live, with the deadline for this approval yet to be determined.
Standard Chartered expects the approval of these ETFs to attract significant inflows of $15 billion to $45 billion in the first 12 months. This influx of capital could drive Ether prices to $8,000 by the end of 2024 and $14,000 by the end of 2025.
Despite the positive news for Ether, the cryptocurrency experienced a “buy the rumor, sell the news” phenomenon, leading to a temporary dip in prices after the approval. Analysts predict that Bitcoin’s price action may follow a similar pattern, with potential buying opportunities arising from any dips in prices.
Overall, the approval of these ETFs marks a significant milestone for the cryptocurrency market, with both Bitcoin and Ether experiencing price fluctuations in response to the news. Investors are advised to stay vigilant and capitalize on potential buying opportunities as the market continues to react to this development.
