Ethereum Price: Can ETH Hit $2,000 If SEC Approves ETF Staking Tomorrow?
Determine if the price of Ethereum will surge to $2,000 or higher contingent upon the SEC's approval of staking in spot ETFs tomorrow.
The currently underperforming Ethereum price has a significant catalyst that could drive it past the psychological threshold of $2,000.
This catalyst involves the potential approval by the Securities and Exchange Commission (SEC) for staking in spot ETH ETFs, which could lead to increased investments from Wall Street.
This article examines the possibility of ETH reaching $2,000 should this approval occur tomorrow.
Ethereum Price May Hit $2000 if SEC Approves $ETH ETF Staking
In September of the previous year, the SEC, led by Gary Gensler, granted approval for several spot Ethereum ETFs.
However, these funds have not performed as well as anticipated, accumulating only $2.47 billion in assets, which brings the total to $6.2 billion.
In comparison, Bitcoin ETFs have garnered over $38 billion in inflows, with BlackRock’s IBIT boasting $58 billion in assets.
Although these Bitcoin ETFs have been available for more than eight months longer than their Ethereum counterparts, the trend suggests that Ethereum ETFs may struggle to catch up.
This slow growth is a contributing factor to the ongoing underperformance of $ETH price.
One significant reason for this underperformance is Gensler's decision to reject Ethereum ETFs that include staking features, limiting ETF holders to returns based solely on price fluctuations.
Conversely, Ethereum investors benefit from an annual return of at least 3%, surpassing many dividend-focused ETFs.
However, this situation may soon change under the leadership of Paul Atkins.
The SEC recently held discussions with Grayscale regarding the potential approval of staking, which could lead to increased inflows and a rise in ETH prices, possibly exceeding $2,000.