Ethereum ETF Approval Expected Next Week: Where’s the Rally?

The cryptocurrency market is abuzz with anticipation as the launch of spot Ethereum ETFs looms on the horizon. After a tumultuous week that saw Ethereum’s price plummet below $2,900, investors are eagerly awaiting the potential rally that could follow the approval of these ETFs.

According to a recent report by CoinShares, Ethereum has experienced a significant capital outflow, with losses totaling $119 million over the past few weeks. Despite this, there is a surge in staking activity, indicating that existing users remain confident in the long-term potential of ETH.

The approval of spot Ethereum ETFs is expected to take place by mid-July, with multiple applicants set to submit their amended S-1 forms before July 8. Asset managers are optimistic that the SEC will greenlight the first US ETFs that invest directly in Ether, potentially sparking a price surge in the cryptocurrency.

Bitwise, BlackRock Inc., Fidelity Investments, 21Shares, and Invesco are among the firms that have filed for Ethereum ETFs, with many issuers yet to disclose their fees. The launch of these ETFs could have a significant impact on Ethereum’s price action, potentially propelling it to new heights.

However, challenges remain, as Bitcoin is expected to face sell pressure due to the return of $8.5 billion worth of assets to creditors of the collapsed exchange Mt. Gox. Ether’s price will need to reclaim the $3,360 support level before July 8 to sustain its short-term rally.

Overall, the cryptocurrency market is bracing for a potential rally as spot Ethereum ETFs inch closer to approval. With the launch expected in the coming weeks, investors are keeping a close eye on Ethereum’s price movements and the potential impact of these ETFs on the market.