Analyst Says Ethereum Spot ETFs Approval Will See “Animal Spirits” Reignite Crypto – What This Means

by

As a researcher with a background in cryptocurrencies and financial markets, I find the prediction made by the crypto analyst “DeFi Villain” regarding the potential impact of Ethereum Spot ETF approval on the market intriguing. The analogy of “animal spirits” being unleashed once again resonates with me, as I have witnessed firsthand the irrational exuberance and optimism that can fuel financial markets in the crypto space.

An analyst specializing in cryptocurrencies has made a mysterious forecast, implying that the SEC’s approval of Ethereum Spot ETFs might trigger a fresh surge of unbridled enthusiasm and optimism within the crypto market. This phenomenon is commonly referred to as “animal spirits” in crypto circles.

Ethereum Spot ETF To Reignite Animal Spirits

On May 22 via a post on what was previously known as Twitter, an influential crypto analyst under the moniker “the DeFi Villain” made a confident prediction. This forecast hinges on the SEC’s approval of an Ethereum Spot ETF, which could trigger a surge in investor enthusiasm and renewed interest in altcoins. The analyst believes that this approval may unleash “animal spirits,” leading to increased demand, optimism, and potentially sparking a bull market.

As an analyst, I identified a number of alternative cryptocurrencies that significantly outperformed in 2021, resulting in impressive rallies for each of them. These surges in value catapulted their market capitalizations from hundreds of millions to billions within the span of just a few days and months.

Some noteworthy altcoins among those spotlighted by DeFi Villain experienced significant growth in market value, with Dogecoin (DOGE), THORChain (RUNE), Filecoin (FIL), Binance Coin (BNB), Axie Infinity (AXS), and Shiba Inu (SHIB) being a few notable examples.

Crypto analysts report that Dogecoin underwent a remarkable 10-fold price jump within a single day in early January 2021. On the other hand, RUNE‘s market capitalization experienced significant growth, expanding from $200 million to a staggering $5 billion over the course of only five months.

As an analyst, I’ve observed some truly impressive growth in the value of Filecoin. In fact, its market capitalization came very close to matching Ethereum’s current valuation during the altcoin surge in 2021. The cryptocurrency soared, nearly reaching a staggering $400 billion.

In simpler terms, the value of some alternative cryptocurrencies, such as AXS, skyrocketed from a market capitalization of $200 million to an astounding $10 billion. At one point, its total fully diluted value even exceeded $43 billion. Binance Coin, which was already worth $6 billion in early 2021 and ranked among the top 20 cryptocurrencies, experienced a massive surge of 8 times its value within just 20 days. By February 2021, its worth had reached an astonishing $50 billion.

As an analyst, I’ve observed some remarkable price surges in the cryptocurrency market. For instance, Shiba Inu (SHIB), a widely-used meme coin, experienced a significant rally, skyrocketing from a market capitalization of $4 billion to an astounding $40 billion within just a month. Similarly, Ethereum Cash (ETC) underwent impressive growth during a five-month period, increasing its market capitalization from a humble $600 million to a substantial $17 billion.

During the 2021 bull market, there were significant spikes in value for altcoins, highlighting their capacity for dramatic price increases when altcoin seasons occur and the crypto market’s focus shifts from Bitcoin to other digital currencies.

Meme coins, as perked out by DeFi Villain’s analysis, are expected to undergo a final surge in the ongoing market cycle, potentially reaching unprecedented heights in an abrupt and intense manner.

ETF Approval Nullifies SEC’s Previous Security Claims?

For several months, the US Securities and Exchange Commission (SEC) has suggested that Ethereum, the second largest cryptocurrency, was classified as a security. But after approving Ethereum Spot Exchange-Traded Funds (ETFs), the SEC has now officially recognized Ethereum as a non-security.

Paul Grewal, the Chief Legal Officer of Coinbase, pointed out the inconsistency in the SEC’s stance regarding Ethereum and Bitcoin. If Ethereum, which doesn’t have a “contractual agreement or undertaking,” is no longer classified as a security by the SEC, then Bitcoin, which functions without such arrangements, should also fall under the same non-security category.

Grewal raised an intriguing inquiry concerning the categorization of twelve cryptocurrencies that share similarities with Ethereum and Bitcoin, yet may not have contractual agreements or undertakings, but are still regarded as securities by the SEC according to their interpretation. The Coinbase Chief Legal Officer’s revelation of this inconsistency highlights potential concerns regarding the SEC’s unclear regulatory stance and inconsistent approach towards different crypto assets.

Read More

2024-05-24 22:14