Bitwise researcher Ryan Rasmussen believes there’s a 50% probability that the Spot Ethereum ETF can be accredited inside the subsequent few months.

Rasmussen shared some perception into the chances in an interview with Yahoo Finance on February twenty sixth. He stated:

“We definitely don’t know if the market is essentially ready the place we might need the SEC to approve a spot (Ethereum) ETF this Might. It might be accredited or it might be rejected and open for one more…future spherical of filings. I believe there’s a few 50/50 p.c probability of being kicked out.”

Different sources, together with Bitwise World Head of Analysis Matt Hogan, beforehand predicted that the Spot ETH ETF had a close to 50% probability of gaining approval in Might. However, the chance of approval on the Polymarket web site is barely decrease at 41%.

The SEC has till a Might 23 deadline to determine on VanEck's Spot Ethereum ETF utility, and is anticipated to determine on different functions concurrently nicely because the Spot Bitcoin ETF.

Rasmussen additionally mentioned the US SEC's failure to approve a Bitcoin ETF till Grayscale filed a lawsuit relating to its utility denial. He added that it's unclear whether or not an identical lawsuit can be wanted for ETFs.

Moreover, it’s unclear whether or not the applicant might file a lawsuit at this stage of the method.

Bitwise believes ETFs will drive costs larger

Bitwise at present has no pending Spot Ethereum ETF functions, however was considered one of a number of candidates to obtain approval for a Spot Bitcoin ETF in January.

Rasmussen stated Bitwise is “very happy” with the success of the Bitcoin ETF. He stated his firm's Bitwise Bitcoin ETF (BITB) has seen inflows of $1 billion, and these ETFs mixed have inflows of greater than $15 billion.

Rasmussen additionally predicted that the Spot Bitcoin ETF and different funds will push up crypto costs as institutional buyers who’ve been “on the sidelines” purchase in. He stated:

“When you have got this sort of demand shock coming into the market, I don’t assume it’s shocking that the value of Bitcoin goes up…If different ETFs emerge, I believe it is going to be the identical for Ethereum and different belongings as nicely. I believe the market. ”

Rasmussen additionally mentioned different occasions impacting the cryptocurrency market, together with Bitcoin's upcoming halving, Ethereum's upcoming Dencun improve, NFT buying and selling quantity, and Solana's worth improve.

He recommended that cryptocurrencies are “rising from the ashes” of the down market in 2022 and getting into a multi-year bull cycle. Rasmussen concluded by reiterating Bitwise's earlier worth prediction, saying the flagship cryptocurrency stays on monitor to achieve an all-time excessive of no less than $88,000 by the top of 2024.