ETH Price Stable Above $3,700 Despite Ethereum ETF Uncertainty, What’s Next?

Ethereum (ETH), the second-largest cryptocurrency globally, has surged above the $3,700 mark, recording a remarkable gain of over 10% in the past week. As of the latest update, the ETH price has increased by 8%, reaching $3,704, accompanied by a market capitalization of $444 billion. With this latest surge, Ethereum’s value has risen by 61% since the start of the year

ETH Price Rallies With Ethereum ETF Expectations

Ether has recently captured the cryptocurrency spotlight with its most significant surge in over a month, driven by speculation surrounding the potential approval of applications for US exchange-traded funds (ETFs) for the token.

Traders are closely monitoring the situation, anticipating a potential rally in Ether’s price if the Securities and Exchange Commission (SEC) permits spot Ethereum ETFs directly holding the token. Major investment firms like BlackRock Inc. and Fidelity Investments have submitted applications for such funds, but uncertainties persist regarding regulatory approval.

Similarly, the SEC’s decision to approve spot Bitcoin portfolios depended on the correlation between CME Bitcoin futures and the digital asset’s price movements. This correlation was considered sufficient for detecting fraudulent activities and market manipulation.

According to James Seyffart, an ETF analyst at Bloomberg, Defiance Investments has filed an application with the US Securities and Exchange Commission (SEC) to introduce a 2x leveraged Ethereum futures ETF. This ETF could potentially commence trading as soon as late June.

Defiance ETFs just filed for a 2x leveraged #ethereum futures ETF. Will potentially trade under the ticker $ETHL pic.twitter.com/9Z6M6tcQ3V

— James Seyffart (@JSeyff) April 8, 2024

ERC20 Assets In Limelight

In recent updates from on-chain data provider Santiment, Ethereum’s strong performance at the start of the week has propelled ERC20 assets significantly ahead of the broader markets. Over the past week, the sector has seen an impressive growth of +8.1%. Notable performers include TON (+21%), LDO (+12%), and ENA (+12%), which continue to surge.

Additionally, ERC20-based NFTs are experiencing renewed attention after a period of relative quiet. Discussions are emerging regarding Ethereum’s potential for growth, concerns about network congestion and gas fees, as well as anticipation surrounding the world’s first Ether staking ETF approval in Canada.