Will Ethereum Hit 10000 This Year Following Approval of Spot ETFs

Could Ethereum Hit $10,000 This Year Following Spot ETF Approvals?
Ethereum has seen a healthy 20% increase in the past month, largely driven by the approval of eight spot-based ETF applications. The SEC granted these approvals on May 23, causing Ethereum’s price to soar to nearly $4,000, marking a two-month high and sparking excitement among traders.
Despite this initial surge, Ethereum’s momentum has slowed in recent weeks due to market uncertainty and the fact that the eight ETFs have yet to launch. However, these applicants have started filing the necessary S-1 forms, paving the way for potential launches as early as this month. The introduction of these ETFs is expected to boost trading volumes and demand, potentially propelling Ethereum to new record highs this year.
The Journey of Spot Ethereum ETFs
The history of Ethereum exchange-traded funds dates back to April 2021 when the Canadian regulator approved the world’s first Ethereum ETF. This spot-based ETH ETF, managed by Purpose Investments, was followed by a similar ETF for Bitcoin in February of the same year. In the United States, approvals for spot-based Bitcoin and Ethereum ETFs were elusive for years due to the SEC’s concerns about market manipulation.
However, the SEC’s stance began to shift in late 2023, following setbacks in the Ripple case and increasing industry criticism. This led to meetings with Bitcoin ETF applicants and eventually approval for 11 spot Bitcoin ETFs in January. Despite doubts about Ethereum ETF approvals, the regulator gave the green light to the first batch in May.
Ethereum Price Movement
After the approval, Ethereum’s price surged from around $3,100 to nearly $4,000 in just a few days. It has since stabilized around $3,750 as the ETF applicants work on filing S-1 registration forms. BlackRock has already submitted its ETF S-1, with expectations for its launch by the end of June. Analysts anticipate significant impact on Ethereum once all ETFs are launched, with some predicting a year-end price of $8,000.
While predictions vary, with some more conservative than others, there is optimism around Ethereum’s potential to reach $10,000 by the end of 2024. Outflows from centralized exchanges following ETF approvals suggest a positive trend for Ethereum’s performance. While $10,000 may be a best-case scenario for this year, surpassing its current all-time high of $4,878 seems likely.
The Future of Crypto
The approval of Ethereum ETFs is a significant step for the industry, offering legitimacy and regulatory clarity. While the focus is currently on Ethereum, there are doubts about whether ETF approvals will extend to other altcoins. Nonetheless, these developments signal a new phase of mainstream adoption for crypto, attracting institutional capital and funding blockchain technology.
Overall, while crypto remains a high-risk asset class, the approval of Ethereum ETFs marks a pivotal moment for the industry. It remains to be seen how these developments will shape the future of cryptocurrency investments in the coming months.