- Ethereum’s community envisions spot ETFs after Bitcoin’s landmark approval on January 11.
- SEC Commissioner Hester Peirce, known as Crypto Mom, anticipates a smoother approval process for Ethereum ETFs.
In the wake of Bitcoin’s spot exchange-traded funds (ETFs) approval on January 11, the Ethereum (ETH) community is now contemplating the possibility of a similar investment product for their blockchain. Despite the SEC’s months-long deliberations with institutional players, there is optimism and hope for a more straightforward path for Ethereum ETF approvals.
Hester Peirce, also known as Crypto Mom and an SEC Commissioner, expresses her optimism for a smoother journey to approval for spot Ether ETFs compared to the challenges faced by their Bitcoin counterparts. Reflecting on the tumultuous engagement that led to Bitcoin ETF approvals, she emphasizes that the approval process for Ethereum ETFs will not follow the same route. She anticipates “regular way considerations” for spot ETF products, avoiding the need for court orders to evaluate the agency’s approach.
Ethereum ETF Applications
Several institutions, including VanEck, Ark21Shares, Hashdex, Grayscale, and Invesco, have already submitted applications for spot ETH ETFs. The Ethereum community has witnessed increased activity and a supply shock as funds rushed into the ETH market amid discussions about the potential approval of spot ETFs.
The market value of Ethereum faces a decline as the Relative Strength Index (RSI) momentum drops steadily. The Ethereum price slipped below the lower boundary of the ascending channel, facing resistance from the 50-day Simple Moving Average (SMA) at $2,336. Increased selling pressure could lead to a test of support around $2,135 and, in a more severe scenario, a drop to the psychological level of $2,000.
However, if bullish momentum returns, Ethereum’s price could rise, potentially reclaiming the ascending channel and confronting the 50-day SMA. A highly bullish scenario could see Ethereum reaching the $2,388 resistance level, with the potential for further gains to the midline of the channel around $2,600 or even the psychological level of $3,000.
