Ethereum
Ethereum Ready to Explode with Impending ETF Approval!
Thu June 27, 2024 ▪ 3 min reading ▪ by Luc Jose A.
Ethereum, the second cryptocurrency in terms of market capitalization, saw its network activity explode by 56% in just one week. This renewed interest coincides with the imminent launch of the first Ethereum ETFs, a potentially revolutionary step for the market. As investors hold their breath awaiting the SEC’s final decision, this surge in activity could well signal a dramatic rise in the price of ETH.
An increase in activity before the ETF
Activity on the Ethereum network recently reached impressive heights, marking a 56% increase in the number of active crypto addresses in just seven days. As of June 17, there were 515,610 unique wallets transacting on the Ethereum network. This trend remained relatively stable until June 21, when news of the Ethereum ETF S-1 filings by Blackrock and VanEck broke, triggering a significant spike. At the end of June 23, the number of active addresses increased to 806,500And since then, it hasn’t gone down.
Over the weekend, ETH price consolidated in a tight range between $3,550 and $3,400, likely reflecting investors’ anticipation of upcoming regulatory developments. Indeed, increased network activity is often seen as a precursor to a major event. In this case, it suggests that cryptocurrency investors are positioning themselves in anticipation of the final approval of Ethereum ETFs.
Ethereum ETF Approval Process Moves Forward Smoothly
At the Bloomberg Investment Summit, Gary Gensler expressed confidence in the approval process for Ethereum spot ETFs, although he did not provide a specific timeline. He highlighted that the current focus is on asset managers, who must provide comprehensive information for their registration statements to be effective. Gensler noted that despite the work being done, the process is moving smoothly.
Initially, the SEC chairman suggested that spot Ethereum ETFs would launch this summer. However, some expert analysts believe that spot Ethereum ETFs will launch on July 2.
In all, anticipation around the launch of Ethereum ETFs and the dramatic increase in network activity indicates a growing interest in this crypto. Investors are on high alert, awaiting the SEC’s final decision, which could transform the market.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.