Ethereum to watch amid speculation for upcoming crypto ETF

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The arrival of a bitcoin futures ETF has investors wondering which cryptocurrency could be next in line. Ethereum, the second largest cryptocurrency, is the most likely candidate, according to social media speculation.

A few leaders in the cryptocurrency market are convinced that it is only a matter of time before an Ethereum ETF emerges. Crypto investor Lark Davis, who is the originator of the Wealth Mastery newsletter, is optimistic about the prospects for an Ethereum ETF. He noted how the price of Ethereum was going up in the wake of bitcoin ETF development, saying: Just wait until they announce ETH ETFs!

Crypto trader and investor The Wolf of All Streets has also taken to Twitter to stay ahead of the curve and predict that an Ethereum ETF will eventually come.

A multitude of activities

They may not be too far away. Cryptocurrency investment firms already have the wheels turning on an Ethereum ETF. In fact, VanEck and ProShares, of which the latter is the originator of the Bitcoin Strategy ETF, have already submitted requests to regulators for their own respective Ethereum futures ETFs over the summer.

These proposals were short-lived, however, after the two companies decided to withdraw them from the review. There are still a handful of other Ethereum ETF applications pending with the SEC that are based on Ethereum spot market prices, including one by Kryptoin Investment Advisors and Gemini Trust Company.

While there is still a cloud of uncertainty over most cryptocurrencies as to how regulators will classify them, U.S. SEC officials have made it clear that they do not view Ethereum as security. SEC Chairman Gary Gensler is a proponent of crypto futures ETFs rather than cash market funds. If an Ethereum ETF does emerge, it could potentially follow a similar pattern to the ProShares Bitcoin Strategy ETF, which is based on BTC futures.

Rise of the Ethereums

The possibility of an Ethereum ETF isn’t too much of a stretch, given the coin dominance rate of 18.4% on CoinMarketCap. Additionally, the price of Ethereum has skyrocketed this year as the popularity of non-fungible tokens (NFT) and decentralized finance (DeFi) has skyrocketed.

The story continues

And while the price of Ethereum has already risen more than 400% since the start of the year, analysts say the bull run is far from over. A Fundstrat analyst believes the price of Ethereum could potentially reach a new all-time high and soon cross the $ 4,900 level. Ethereum is currently trading slightly below $ 3,900.

This article originally appeared on FX Empire

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