Investing.com – Although final confirmation is still needed before spot exchange-traded funds (ETF) trading can begin, the market sees a strong likelihood of this happening soon, with expectations set for the coming weeks.
Ana de Mattos, technical analyst and trader associated with Ripio, notes that “although they have been approved, trading of these ETFs is not yet scheduled because the SEC needs to approve the S-1 documents, which detail the management of the funds. ”explains Mattos, who recalls that these forms are still under review.
Last week, the US Securities and Exchange Commission (SEC) asked exchanges to amend their filings and approved the forms on Thursday the 23rd. “Markets are awaiting final confirmation from the SEC on the exchange forms. asset managers, which could happen soon and would be the last obstacle before the commercialization of these products is approved,” says Manuel Villegas, digital asset analyst at Julius Baer.
The market considers this trade 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 fallen from approximately 20% at 1%. In recent days.
“At the same time, options markets are showing a clear bias in Ethereum options across all expirations. In fact, for every put option there are almost two buy options,” adds Julius Baer.
Although investors benefit from closer monitoring of the spot prices of these products, Julius Baer believes that approval is already built into the price.
Analysts expect not only an increase in Ethereum, which already rose 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 that 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 p.m. (CET), Ethereum was down 1.03% to $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 US elections and recalls that former president and candidate Donald Trump supports several projects related to cryptocurrencies, while Biden is expected to decide whether to sign on 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 the regulation of digital assets, with the aim of providing a framework for service providers,” added Julius Baer.
Ethereum's moment
Ethereum is about to reach its “best moment,” according to Daniel González, Crypto Analyst at Bitso. Among the positive drivers is the increased adoption of technologies enabled by the Ethereum network, which play a crucial role in the development of Web3. In addition, the expansion of smart contracts, applications that automate transactions and financial inclusion aimed at decentralized payments are also among the drivers, highlighting the possibilities of the technology.
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