Investing.com – While final confirmation is still needed before spot ETF trading begins, the market sees a high likelihood of this happening soon, with expectations set for the coming weeks.
Ana de Mattos, a technical analyst and trader working with Ripio, notes that “even though they have been approved, trading of these ETFs is not yet scheduled because the SEC must approve S-1 filings that discuss the management of the funds in detail,” she explains. Mattos, who reminds that these forms are still under review.
Last week, the U.S. Securities and Exchange Commission (SEC) asked exchanges to correct the submitted documents and approved the forms on Thursday, December 23. “Markets are waiting for final SEC approval of the asset management forms, which could come soon and will be the last hurdle before these products are approved for trading,” notes Manuel Villegas, digital assets analyst at Julius Baer.
The market perceives this trade as almost certain in the brief term, as can be seen from some indicators, cites the Swiss group, including: following the discount on Grayscale’s closed-end Ethereum Trust and its net asset value, which has fallen from around 20% to 1% in recent days.
“At the same time, options markets show a clear bias for Ethereum options across all maturities. In fact, for every put option, there are almost two call options available,” adds Julius Baer.
While investors benefit from more closely tracking spot prices for these products, Julius Baer believes approval is largely based on price.
Analysts expect not only growth in Ethereum, which has already increased by over 20% in May, but also other projects related to this technology. According to Mattos, Ethereum continues to face robust buying pressure, with resistance at $4,565 if the flow continues. The analyst believes that beyond this range, the cryptocurrency could break its all-time high and reach the first Fibonacci expansion level at $5,454, with short-to-medium-term supports at $3,200 and $2,980.
At 4:30 PM ET, Ethereum was down 1.03% at $3,837.43.
American Crypto Scenario
Julius Baer states that a possible reason for speeding up this approval process is the proximity of the US elections and recalls that former president and candidate Donald Trump supports various cryptocurrency projects while Biden is expected to decide whether to sign the 21st Century Finance Act inclusion and technology that has been endorsed by the Republican Party and much of the Democratic Party. “The legislation is expected to bring clarity to the regulation of digital assets, aiming to provide a framework for service providers,” Julius Baer added.
Ethereum moment
According to Daniel González, Crypto Analyst at Bitso, Ethereum is on the verge of hitting its “best moment”. Positive factors include the wider operate of technologies provided by the Ethereum network, which play a key role in the development of Web3. In addition, drivers also include the development of astute contracts, transaction automation applications, and financial inclusion focused on decentralized payments, highlighting the capabilities of this technology.
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