- The exchange has addressed specific issues regulators may have with ETF approval.
- The price of ETH may exceed $3,000 before potential approval.
Cryptocurrency exchange Coinbase told the US SEC. Grayscale says it is ready to support the Ethereum (ETH) ETF application submitted.
Coinbase said it has met applicable exchange laws since listing in the country, according to a memo sent to SEC Secretary Vanessa Countryman.
In addition, the exchange pointed out that Ethereum made it clear that cryptocurrencies are not securities by switching to proof-of-stake (PoS). I explained that
“The market has long understood that ETH is not a security. “Senior officials at the Commission have made such statements publicly on several occasions over the past six years, and neither the Commission nor its staff have denied this position since the merger.”
Don’t sleep on ETH
The exchange also noted that it is the primary depository for the recently approved spot Bitcoin (BTC) ETF. So the committee should have trouble approving an Ethereum ETF.
Since the approval of the Bitcoin ETF in January, market participants have been optimistic that Ethereum will follow suit.
Additionally, the SEC has set an approval deadline of May. Accordingly, interest is shifting from BTC to ETH. At press time, ETH was trading at $3,000, up 30% in 30 days.
This was on par with Bitcoin’s performance.
However, despite the increase, AMBCrypto reported how the price of ETH could rise higher before that deadline.
One reason for this prediction is increased optimism about the project. If it continues this way, buying pressure on ETH could become stronger, which could eventually lead to a rise in the price.
From an on-chain perspective, the number of addresses with non-zero balances is increasing.
Source: Glassnode
ETFs can add more fuel to your hike.
As of January 1, there were 111,673,112 Ethereum addresses with non-zero balances. However, an evaluation of Glassnode’s data showed that the number had jumped to 115,061,094.
This increase suggests that demand for ETH in the retail sector is improving.
Later on, ETH could rise above $3,500 if retail demand maintains momentum while institutions pile in. In terms of Market Value to Realized Value Ratio (MVRV), we see an increase.
According to data from Santiment, ETH’s 30-day MVRV ratio was 16.41%.
This indicator tells you when the market has large unrealized profits or losses. So you can see when a cryptocurrency is close to its local high or when it is time to accumulate.
Source: Santiment
Read Ethereum (ETH) price prediction for 2024-2025
The lower the ratio, the more undervalued it can be considered. However, the increase in ETH cases suggested that more people were willing to sell at press time.
Nonetheless, this does not mean that ETH’s price action may plateau or decline. There are opportunities for a retracement, but external factors such as spot Ethereum ETFs can also push the price higher.