ETFs
What are the next steps? By Investing.com
Investing.com – Although final confirmation is still needed before trading in spot exchange-traded funds (ETFs) can begin, the market believes it is highly likely to happen soon, with expectations set for the coming weeks.
Ana de Mattos, technical analyst and trader associated with Ripio, notes that “even though they have been approved, trading of these ETFs is not yet scheduled because the SEC must approve the S-1 documents, which detail the management of the funds. », Explains Mattos, who points out that these forms are still being revised.
Last week, the US Securities and Exchange Commission (SEC) asked exchanges to amend their filings and approved the forms on Thursday 23. “Markets await final confirmation from the SEC on asset manager forms , which could happen soon and would be the last hurdle before these products are approved for trading,” emphasizes Manuel Villegas, digital assets analyst at Julius Baer.
The market considers this trading as almost certain in the short term, which can be observed in certain indicators, cites the Swiss group, notably the discount on Grayscale’s closed Ethereum Trust and its net asset value which fell by around 20 % to 1%. in the last days.
“At the same time, options markets show a clear disparity in Ethereum options across all maturities. In fact, for every put option, there are almost two call options,” adds Julius Baer.
Although investors benefit from closer monitoring of spot prices with these products, Julius Baer believes that the approval is largely taken into account.
Analysts expect not only a rise in Ethereum, which has already risen by more than 20% in May, but also other technology-related projects. According to Mattos, Ethereum continues to face strong buying pressure, with resistance at $4,565 if the flow continues. Beyond this range, the analyst believes that the cryptocurrency could surpass its all-time high and reach the first Fibonacci expansion level at $5,454, with short- and medium-term supports at $3,200 and 2,980. $.
As of 4:30 p.m. ET, Ethereum was down 1.03%, at $3,837.43.
American crypto scenario
Julius Baer states that a possible reason for the acceleration of this approval process is the proximity of the US elections and recalls that former president and candidate Donald Trump supports various crypto-related projects, while Biden is expected to decide whether to sign or not 21st Century Financial. Inclusion and Technology Act, which was endorsed by the Republican Party and much of the Democratic Party. “Legislation should promote clarity around the regulation of digital assets, with the aim of providing a framework for service providers,” added Julius Baer.
Ethereum’s moment
Ethereum is about to reach its “best moment,” according to Daniel González, Crypto Analyst at Bitso. Among the positive factors is the increased adoption of technologies enabled by the Ethereum network, which play a crucial role in the development of Web3. Additionally, the expansion of smart contracts, applications that automate transactions and financial inclusion geared towards decentralized payments are also among the drivers, highlighting the possibilities of the technology.
***
Do you want to invest in cryptocurrency stock stocks? InvestPro has professional tools to help you invest with confidence and never be left in the dark, such as:
- ProPicks: Strategies that use AI to select explosive stocks.
- Pro tips: Quick, straightforward advice to simplify financial information.
- Advanced action filter: Find the best stocks based on hundreds of metrics.
- Ideas: Discover how the best global managers position themselves and copy their strategies.
- Turbo navigation: Investing.com pages load faster, without advertising.
- Financial data at institutional level: Build your own strategies with stocks from around the world.
Stop investing in the dark! Use the coupon INVEST and benefit from an additional discount on the Pro or Pro+ 1 or 2 year promotion. But this offer is for a limited time! Click here and get your special price now!