[Hours until Ethereum ETF decision: Will Sell the News happen? 】
Bloomberg ETF analyst Eric Balchunas expects the SEC to announce a decision around 16:00 ET today. Based on previous decisions, for example, the spot Bitcoin ETF was approved at 15:45 ET, so we can expect similar timing.
Markus Thielen of 10X Research suggested that SEC Chairman Gary Gensler may issue a warning post about the risks of investing ahead of the decision, similar to what he did ahead of the approval of the Bitcoin (BTC) ETF.
The post, expected to go live around 9 a.m. ET, could hint at the possibility of approval. The SEC has previously issued warnings before major cryptocurrency-related decisions, including on Bitcoin futures ETFs.
Many in the cryptocurrency industry are wondering whether this approval will trigger a “Sell the News” scenario. However, well-known crypto analyst Crypto Nova believes that the market has not yet adjusted to such events. Crypto Nova advises investors to review the data.
“Ethereum (and other altcoins) have only declined against Bitcoin since the last bull run in 2021. The market is only focused on Bitcoin because of spot ETF approvals and the halving. These factors have not transferred to Ethereum yet,” Crypto Nova said.
This suggests that the altcoin season that has historically accompanied Ethereum’s surge has not yet begun. “The potential approval effects are not yet reflected in the price,” Crypto Nova contends, pointing to Ethereum’s massive upside potential. She predicts a price target of $10,000 for Ethereum this year.
Instead, investors should remember the market reaction following the approval of the spot Bitcoin ETF, which saw the price of Bitcoin drop more than 20% to the $38,000 level. This reminds us that approval could still lead to a sell-off.
Still, the long-term outlook remains bullish. Thielen believes that an approved Ethereum ETF could transform Ethereum from a utility-focused to a store-of-value asset, similar to Bitcoin’s transformation after 2017.