The financial and crypto communities are on high alert as the U.S. Securities and Exchange Commission (SEC) prepares to announce its decision on VanEck’s spot Ethereum ETF.
With the verdict expected around 4:00 PM ET today, analysts and investors are debating whether Ethereum’s price has already factored in the potential approval or if further volatility lies ahead.
Key Timelines and SEC Signals
Eric Balchunas, Bloomberg’s senior ETF analyst, predicts the SEC will follow a timeline similar to its January approval of the spot Bitcoin ETF, which was announced at 3:45 PM ET. Meanwhile, Markus Thielen of 10X Research suggests SEC Chair Gary Gensler may issue a cautionary tweet about investment risks—a tactic used before the Bitcoin ETF decision—as early as 9:00 AM ET.
Such signals could offer clues about the SEC’s stance. Historically, the agency has warned investors ahead of major crypto-related announcements, including Bitcoin futures ETFs.
Will the Market "Sell the News"?
The crypto market is no stranger to "buy the rumor, sell the news" events. After the Bitcoin ETF approval in January, Bitcoin’s price dropped over 20%, bottoming near $38,000. Ethereum could face similar short-term pressure if traders take profits post-approval.
However, prominent analyst Crypto Nova argues that Ethereum’s upside potential remains untapped:
“Since 2021, Ethereum and altcoins have underperformed against Bitcoin. The market focused solely on Bitcoin due to its ETF hype and halving. An Ethereum ETF could shift attention back to ETH, unlocking massive gains.”
Crypto Nova maintains a $10,000 price target for Ethereum this cycle, citing the lack of priced-in ETF effects and the potential start of an altseason.
Long-Term Implications of an Ethereum ETF
Beyond short-term price action, an approved Ethereum ETF could redefine ETH’s role in the market. Thielen suggests it may transition Ethereum from a utility token to a store-of-value asset, mirroring Bitcoin’s evolution after 2017.
👉 Why Ethereum’s ETF Approval Could Reshape Crypto Markets
FAQs
1. What time will the SEC announce its Ethereum ETF decision?
The decision is expected around 4:00 PM ET, based on the timing of the Bitcoin ETF approval.
2. Could Ethereum’s price drop after the ETF approval?
Yes, a short-term sell-off is possible, as seen with Bitcoin’s ETF. However, long-term prospects remain bullish.
3. How high could Ethereum’s price go post-ETF?
Analysts like Crypto Nova project ETH could reach $10,000 this cycle if institutional demand surges.
4. Will an Ethereum ETF trigger an altcoin season?
Approval could redirect market focus to altcoins, potentially kickstarting a broader rally.
5. How does the Ethereum ETF differ from Bitcoin’s?
While both offer regulated exposure, Ethereum’s staking rewards and DeFi integration add unique dynamics.
👉 Ethereum vs. Bitcoin ETFs: Key Differences Explained
Strategic Takeaways for Investors
- Short-term traders: Prepare for volatility and potential profit-taking post-announcement.
- Long-term holders: An ETF could solidify Ethereum’s institutional adoption, supporting higher valuations.
- Altcoin investors: Monitor ETH/BTC ratios for signs of an altseason breakout.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Conduct independent research before making investment decisions.