Experts say the potential rejection of the Ethereum spot ETF is not a major setback.

The approval of a U.S. spot Ethereum exchange-traded fund (ETF) could boost the market value of Ethereum. But even if these ETFs are rejected, it’s just a hurdle, not an obstacle, suggested Jupiter Zheng, head of research at HashKey Capital.

“Even if the ETF gets rejected, it won’t be very bearish because the market hasn’t priced it in yet,” Zheng told Cointelegraph earlier this month.

Zheng also expressed optimism about the potential bullish effect of approved ETFs, especially those that include staking, which could trigger a wave of near-term liquidations and push Ethereum prices higher.

The U.S. Securities and Exchange Commission (SEC) is expected to make a decision on a spot Ethereum ETF within the next month. Unlike the situation with the spot Bitcoin ETF, where progress reports have been plentiful, the mood surrounding the Ethereum ETF is currently less optimistic.

Bloomberg ETF analyst Eric Balchunas reduced the likelihood of approval to 35%. Likewise, analysts at Barron’s and JPMorgan remain skeptical due to the SEC’s lack of involvement.

VanEck, one of the issuers of spot Ethereum funds, recently told CNBC that the SEC’s response could be an outright rejection.

Although unlikely, the approval of a spot Ethereum ETF may not be the only source of momentum for the market during this period. Prominent cryptocurrency investor Jelle believes that Ethereum’s boom times are yet to come.

According to him, there are similar price patterns on the Ethereum charts leading up to the recent Bitcoin halving on April 20, 2024 compared to the price patterns before the May 2020 halving.

last #Bitcoin Half-life is $ETHThis is a signal to start running hard.

Is it different this time? I don’t think so. pic.twitter.com/fGIiGYufe0

— Jelle (@CryptoJelleNL) April 4, 2024

According to data from CoinMarketCap, the price of Ether in 2020 was around $210 before the halving and rose to $433 on August 14, an increase of 106%. Jelle sees this historical pattern as a potential indicator of another price increase for ETH following the recent halving.

The fate of a spot Ethereum ETF remains speculative in the United States, but in Hong Kong, such an offering is ready to make its trading debut.

Earlier this month, Hong Kong’s securities watchdog approved applications for a Bitcoin and Ethereum ETF from four asset managers, including HashKey Capital, Bosera Capital, Harvest Global and China Asset Management.