Investing.com – Although final confirmation is still needed before the trading of spot Exchange Traded Funds (ETFs) can begin, the market sees a strong likelihood of this happening soon, with expectations set for the coming weeks.
Ana de Mattos, a technical analyst and trader partnered with Ripio, notes that “even though they have been approved, trading of these ETFs is not yet scheduled because the SEC needs to approve the S-1 filings, which detail the management of the funds,” explains Mattos, who reminds us that these forms are still under review.
Last week, the U.S. Securities and Exchange Commission (SEC) requested exchanges to amend their filings and approved the forms on Thursday, the 23rd. “Markets are awaiting final SEC confirmation on the asset managers’ forms, which could happen soon and would be the last hurdle before these products are approved for trading,” points out Manuel Villegas, digital asset analyst at Julius Baer.
The market views this trading as almost certain in the short term, which can be observed in some indicators, cites the Swiss group, including the discount on Grayscale’s closed Ethereum Trust and its net asset value, which has dropped from about 20% to 1% in recent days.
“At the same time, options markets are showing a clear skew in Ethereum options across all maturities. In fact, there are nearly two call options for every put option,” adds Julius Baer.
Although investors benefit from closer spot price tracking with these products, Julius Baer believes the approval is largely priced in.
Analysts expect not only a rise in Ethereum, which has already increased by more than 20% in May, but also in other projects related to the technology. 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 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.
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 the acceleration of this approval process is the proximity of the American elections and recalls that former President and candidate Donald Trump supports various crypto-related projects, while Biden is expected to decide whether to sign the 21st Century Financial Inclusion and Technology Act, which has been approved by the Republican Party and much of the Democratic Party. “The legislation is expected to promote clarity around digital asset regulation, aiming to provide a framework for service providers,” added Julius Baer.
Ethereum’s Moment
Ethereum is on the verge of reaching its “best moment,” according to Daniel González, Crypto Analyst at Bitso. Among the positive drivers is the greater 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.
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