Ethereum ETF Approval in Q3 Could Ignite Crypto Bull Run: Bitfinex Analyst

Ethereum ETF Approval in Q3 Could Ignite Crypto Bull Run: Bitfinex Analyst

The approval of U.S. spot ether exchange-traded funds (ETFs) during the third quarter could significantly boost the current positive momentum in the cryptocurrency market, potentially triggering a bull run, according to a Bitfinex analyst. This anticipated regulatory approval is expected to further enhance the recent gains seen in digital assets.

Economic Indicators and Federal Reserve Actions

First-quarter economic activity has suggested a slowdown, leading to expectations that the Federal Reserve might cut rates later this year. Bitfinex points out that investor appetite for riskier assets like Bitcoin could fluctuate, resulting in uneven investment flows into ETFs tracking these assets and potentially impacting overall investor sentiment.

Bitfinex analysts also estimate that Bitcoin could experience positive effects from the halving event in April, which historically has led to the start of a bull market 10-12 weeks after the reduction in miner rewards.

Potential Impact of Ethereum ETF Approval

“A potential Ethereum ETF launch in Q3 could further amplify this positive momentum for crypto,” stated Bitfinex. The approval of spot Ether ETFs is expected to attract significant institutional investment, as many large financial institutions and asset managers have been hesitant to invest directly in cryptocurrencies due to regulatory uncertainties and the complexities of holding digital assets. A regulated ETF would offer a familiar and compliant vehicle for these entities to gain exposure to Ether.

The Bitfinex analyst emphasized that the approval of Ether ETFs could act as a major bullish signal for the crypto market and potentially lead to a surge in Ether’s price. In June, Securities and Exchange Commission (SEC) Chair Gary Gensler mentioned that the progress of launching the first spot Ether exchange-traded funds is “going smoothly.”

Expected Volatility in Crypto Markets

Jag Kooner, Head of Derivatives at Bitfinex, advised that market participants should prepare for increased volatility in both traditional and crypto markets in July due to regulatory developments and macroeconomic policies. “Investors might anticipate further economic data releases and Fed policy updates, which could influence both traditional and crypto markets,” said Kooner.

Additionally, Kooner noted that the Fed Funds futures data suggests the market is still expecting and pricing in two rate cuts in 2024. “The Fed’s statements and a possible continuation of a more hawkish stance are important factors to watch,” added Kooner.

Conclusion

The potential approval of U.S. spot Ether ETFs in Q3 could serve as a catalyst for a crypto bull run, enhancing the recent positive momentum in digital assets. As institutional investment increases and regulatory clarity improves, Ethereum and the broader crypto market could see significant growth. However, investors should remain vigilant of economic indicators and regulatory developments that could influence market dynamics.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *