Ethereum Price’s 10% Rally To Breach $2600: Spot Ether ETF Coming?

Key Takeaways:

• Ethereum’s Price Surge Post-Bitcoin ETF Approval: Ethereum experienced a substantial price surge, exceeding 10%, following the historic approval of spot Bitcoin ETFs by the SEC.
• Spot Ether ETF Filings: Companies like Ark 21 Shares and VanEck, having successfully listed spot Bitcoin ETFs, have filed with the SEC to introduce spot Ether ETFs. This demonstrates a growing interest in expanding the range of crypto ETF offerings.
• Investor Interest in Spot Crypto ETFs: Proponents believe that spot ETFs have the potential to attract both institutional and retail investors. These investment instruments provide exposure to underlying assets without the complexities associated with centralized exchanges or crypto wallets.
• Vitalik Buterin’s Gas Limit Proposal: Ethereum co-founder Vitalik Buterin defended increasing the network’s gas limit in a Reddit session. The proposal aims to raise the gas limit from 30 million to 40 million, emphasizing stability and improved throughput for Ethereum, a move that could positively impact its performance.

In the wake of the groundbreaking approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), Ethereum, the second-largest crypto by market cap, experienced an major surge in its price. The anticipation surrounding the approval of spot Ether ETFs has added further momentum to Ethereum’s market dynamics.

Ethereum price witnessed a notable uptick, surging by more than 10% immediately after the SEC approved 11 spot Bitcoin ETFs on January 10. This surge propelled Ethereum price to approximately $2,600, following a minor correction from its recent high near $2,700 per ETH.

Read More: Ethereum Price Prediction

Companies such as Ark 21 Shares and VanEck, both of which have their spot Bitcoin ETFs actively trading on exchanges, took the initiative to file for the listing of spot Ether ETFs with the SEC back in September. Joining the fray, BlackRock, a major player in the financial landscape that recently introduced its iShares Bitcoin Trust, filed for the listing of an iShares Ethereum Trust in November.

Advocates of spot crypto ETFs argue that these investment instruments hold the potential to attract both institutional and retail investors. By offering exposure to the underlying assets without the need to navigate centralized exchanges or manage the complexities of crypto wallets, spot ETFs provide a more accessible entry point into the crypto market.

The surge in Ethereum price following the Bitcoin ETF approval suggests a growing belief among investors that spot ETFs for Ethereum could soon become a reality. This development coincides with Ethereum co-founder Vitalik Buterin’s defense of increasing the network’s gas limit.

Additional Read: Will Ethereum Price Rise After BlackRock ETF Approval?

In a recent Reddit ask-me-anything session, Buterin addressed the Ethereum gas limit, highlighting its stability for nearly three years – a noteworthy milestone for the blockchain network. The gas limit determines the maximum amount of gas allocated for transactions or smart contracts in each block. As a transaction fee on the blockchain, gas plays a crucial role in maintaining network performance.

Buterin argued that a sensible move would be to raise the gas limit from its current 30 million to around 40 million. Notably, the gas limit, which commenced at approximately 3 million in 2015, has gradually increased. This move could further enhance Ethereum’s capacity and throughput, contributing to its overall efficiency.

As Ethereum price reacts positively to the evolving landscape of crypto ETFs and the potential for spot Ether ETFs looms on the horizon, the crypto community eagerly awaits further developments that could reshape the dynamics of Ethereum’s ecosystem. The intersection of regulatory advancements and network enhancements positions Ethereum as a focal point of attention in the ever-evolving crypto market.

Source: cryptoglobe