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HomeNewsBitcoin to Hit $88,000? Bitwise Predicts End-of-Year Surge While Betting on Spot...

Bitcoin to Hit $88,000? Bitwise Predicts End-of-Year Surge While Betting on Spot Ethereum ETF

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  • Rasmussen anticipates a 50% chance for approval of a spot Ether ETF in May, driving interest.
  • The success of the Bitwise spot Bitcoin ETF, surpassing $1B in assets, bodes well for the future of cryptocurrency ETFs.

Bitwise analyst Ryan Rasmussen sheds light on the likelihood that we will see a spot Ethereum ETF approved in May, putting the odds at a 50% balance.

This forecast has generated a wave of anticipation among institutional investors, who are already positioning themselves in the Ether futures and options market.

why this anticipation? The potential approval of a spot Ethereum ETF could mean a breakthrough, especially when ETH has already seen an impressive 40% year-to-date gain.

The Influence of Legal and Market Developments

Grayscale’s legal win in 2023 set a precedent, opening the door to the approval of other spot Bitcoin ETFs. Rasmussen suggests that, unlike Bitcoin, approval of Ethereum ETFs may not necessitate a legal battle, although he does not completely rule out that possibility in the event of rejection.

That, along with Dencun’s March upgrade to the Ethereum network, which promises to significantly reduce transaction costs, could be a catalyst for attracting new users and encouraging wider adoption.

The Impact of Spot Bitcoin ETFs

The approval of spot Bitcoin ETFs has been a game changer, with the Bitwise ETF now exceeding $1 billion in assets. This massive influx of capital into the Bitcoin-based ETF market, exceeding $15 billion, is putting significant buying pressure on the underlying asset.

Rasmussen anticipates that Bitcoin could surpass its previous all-time high, potentially reaching $88,000 by the end of the year, driven by the success of ETFs and the upcoming halving event.

SEC Decision: A Turning Point for Ethereum

The anticipation for the upcoming SEC decisions is not only focused on Ethereum, but also affects the future trajectory of cryptocurrency ETFs in the United States.

While Bitwise does not currently have a pending application for a spot Ethereum ETF, the success of its spot Bitcoin ETF highlights a growing interest in cryptocurrency ETFs. This interest could bode well for future approvals, including Ethereum ETFs.

The current cryptocurrency market landscape is influenced by a number of factors, from Bitcoin’s anticipated halving to Ethereum’s Dencunupgrade , to fluctuations in NFT trading volumes and growth in the price of Solana.

These elements, according to Rasmussen, are not only contributing to the sector’s recovery from a challenging 2022, but could also mark the beginning of a multi-year bull cycle. This cycle could be bolstered by the introduction of more cryptocurrency ETFs, potentially replicating the positive price impacts seen with Bitcoin ETFs.

 

Ethereum’s current price, according to the latest data, is approximately $3,263.10 USD, experiencing an increase of 2.68%.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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