As an experienced analyst, I believe that while the approval of the Ethereum ETF is a significant step forward for the cryptocurrency market, it’s essential to remain cautious about reading too much into this single approval. The current greenlight pertains only to 19b-4s and not the more substantial S-1s, meaning that the bigger, more impactful approvals are still in the works.
The anticipated approval of an Ethereum ETF didn’t occur right away upon announcement. Contrary to the hopes of many Ethereum optimists, the market response wasn’t what they had expected. At present, Ethereum has barely managed to surpass its local resistance point and subsequently took a step back.
So, what’s holding Ethereum back?
Only 19b-4s approved, Not S-1s
The current approval exclusively applies to 19b-4s, leaving the more substantial S-1s yet to be approved. In simpler terms, progress has been made but the significant approvals that could greatly influence the situation are yet to come. The market is aware of this and remains cautious until the S-1s receive approval as well. This represents a typical market reaction – while a step forward is positive, it doesn’t compare to the transformative impact of full approval.
“Delegated authority”
The Division of Trading and Markets granted approval to this ETF using their delegated power, leaving room for a commissioner to dispute the decision within the ensuing 10 days. This ambiguity casts a shadow over the market, as it is unclear if this approval represents the last word on the matter or if further debate may ensue due to its politically sensitive content.
The approval of an Ethereum ETF is a significant development, but it doesn’t automatically mean a dramatic price increase. There are still political maneuvers to navigate and additional approvals required to fully implement the move. Moreover, amidst broader regulatory and economic uncertainties, investors are adopting a cautious approach for the time being.
Although Ethereum hasn’t gained much traction recently, it remains poised for a surge. With affordable network fees as a draw, it may attract increased activity and reach a reasonable price point before hitting the significant $4,000 mark.
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2024-05-24 11:30