Why is ETH Price Holding Back Despite Ethereum ETF Approval?

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You are wrong if you think the SEC has fully approved ETH ETFs. The SEC has approved only Form 19b-4 for eight Ethereum ETF issuers, including major players like BlackRock and Fidelity, which has stirred both excitement and caution in the crypto market. However, while this development is a big move, there are still some key factors holding Ethereum back from reaching its full potential. When will ETH hit the new ATH? Let’s find out. 

Key Factors Blocking the ETH Rally

19b-4s Approved, Not S-1s

The approval granted by the SEC only covers Form 19b-4, not the more significant S-1 registration statements. This means that while progress has been made, the crucial final approvals are still pending. Investors are aware of this and are exercising caution until the S-1s receive the green light. Partial approval is seen as positive but not groundbreaking.

“TO BE CLEAR: This does not mean they will begin trading tomorrow. This is just 19b-4 approval. Also needs to be approval on the S-1 documents which is going to take time” ~ 

@JSeyff

“Delegated Authority” and Uncertainty

Unlike Bitcoin Spot ETF approvals, the ETF approval was done by the Division of Trading and Markets using “delegated authority,” meaning a commissioner could still challenge it within 10 days. This creates uncertainty and fear in the market, as the approval might not be final and could face political issues.

Political Pressure and More Approvals

While the Ethereum ETF approval is a positive step, it’s not a guaranteed ticket to the moon. SEC only permitted ETH listing, not buying. No major pump yet because of that. Once they allow ETH trading, major institutions will invest, starting the ultra-bull run. However, more approvals and political factors are still in play. Due to broader regulatory and economic uncertainties, investors are being cautious for now.

Market Reaction and What’s Next

On top, ETH has overcome several technical obstacles, and its low network prices may encourage more activity. However, reaching a fair price before the $4,000 threshold may take time.

However, history shows us that the immediate impact of ETF approval might not be as dramatic as expected. Bitcoin’s price, for example, dropped after spot Bitcoin ETFs were approved earlier this year, taking about a month to see significant gains.

While Ethereum educator Sassal believes Ethereum is undervalued and has only begun to price in the ETF approval, the market is taking a cautious approach. Ethereum has done well this month, but the ETF approval may take longer to take effect. Bitcoin fell 1.2% briefly before recovering, and other cryptocurrencies like Pepe rallied 5% after the news.

In short, So far VanEck has just filed a revised S-1 with the SEC, and analysts expect clearance in weeks to months. Crypto analyst Zach Rynes thinks ETF inflows will drive Ether prices once they start trading.