ETFs
Coinbase ETFs Confident Spot Ether Could Hit Market Sooner Than We Thought ⋆ ZyCrypto
Despite industry pessimismSpot (ETH) exchange-traded funds (ETFs) that give investors access to Ethereum’s ether (ETH) could be approved sooner rather than later, according to Coinbase, the largest crypto exchange in the United States. United.
Spot Ether ETFs Only a Matter of Time
Expectations that the U.S. Securities and Exchange Commission (SEC) would give regulatory approval this month to spot ether ETFs have declined significantly due to the agency’s radio silence with potential issuers.
However, despite the broad consensus that an ETH ETF is unlikely to be approved anytime soon, Coinbase analysts believe the market may be underestimating the chances of a potential approval.
In a Thursday research reportthe largest U.S. cryptocurrency exchange said that “while there is uncertainty about timely approval given the SEC’s apparent silence toward issuers,” it is only one It’s a matter of time before such an investment vehicle comes into operation.
There are many investment titans, including BlackRock, Fidelity and Franklin Templeton, who have applications submitted with the SEC to introduce an Ether exchange-traded fund. However, the SEC has continually decision deadlines postponed for deposits. Additionally, potential fund issuers are prepare for denials as their private discussions with the regulator have not been as productive as before the January approval of spot Bitcoin ETFs.
But as crypto increasingly becomes a major election issue in the United States, and with possible litigation on the horizon if rejected, Coinbase institutional research analyst David Han believes the chances to get the green light are around 30 to 40%.
It is worth mentioning that Coinbase has already met with the SEC to address concerns regarding the conversion of Grayscale’s Ethereum Trust into a spot ETF, like ZyCrypto reported.
ETH price could surprise on the rise in the coming months
Ethereum’s price has underperformed many of its major peers year-to-date, rising about 32% in 2024, compared to 56% for Bitcoin and 65% for Solana. However, Coinbase remains optimistic about the long-term prospects of the second-largest cryptocurrency by market capitalization.
“Ether could have the potential to surprise to the upside in the coming months,” Han argued, arguing that ETH does not have “major sources of supply-side overhangs” like the unlocking of tokens or selling pressure from miners.
“On the contrary, staking and layer 2 growth have proven to be important and growing sinks of ETH liquidity,” the Coinbase strategist added. “ETH’s position as the center of decentralized finance (DeFi) is also unlikely to be displaced in our view due to the widespread adoption of the Ethereum Virtual Machine (EVM) and its layer innovations 2.”
In conclusion, Han asserts that Ether has the potential to outperform in the second half of 2024, although it has been underperforming year-to-date.
Data from CoinGecko shows that ETH is up almost 4.8% over the past 24 hours. Over seven days, the market’s largest altcoin is up about 7%. Its price is now $3,089.10.