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

by

As a seasoned crypto analyst with years of experience in the volatile and complex world of digital currencies, I can’t help but be intrigued by the recent prediction made by an influential figure in the community known as “the DeFi Villain.” The possibility of Ethereum Spot ETFs being approved by the SEC and the potential impact it could have on the market is an exciting prospect that warrants closer examination.

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

Ethereum Spot ETF To Reignite Animal Spirits

As a crypto investor, I’m always keeping an eye on the latest developments in the market. And back in May, I was particularly intrigued by a post made by “the DeFi Villain” on X (formerly Twitter). In this post, the analyst expressed confidence that the SEC’s approval of an Ethereum Spot ETF would mark the beginning of a new altcoin season. According to them, this approval could unleash “animal spirits,” leading to renewed demand and optimistic sentiment among investors. And if history is any guide, such positive market conditions often result in a full-blown bull market. So, as an investor, I believe it’s essential to keep track of these developments and consider adjusting my investment strategy accordingly.

As an analyst, I identified a number of alternative coins (altcoins) that significantly outperformed in 2021, resulting in impressive rallies for each. These surges elevated their market capitalizations from hundreds of millions to billions within a short timeframe.

As an analyst, I’ve observed some intriguing altcoins among the DeFi Villain’s selection that experienced significant growth in market capitalization. Notably, Dogecoin (DOGE), THORChain (RUNE), Filecoin (FIL), Binance Coin (BNB), Axie Infinity (AXS), and Shiba Inu (SHIB) have all seen impressive gains.

Crypto analysts reported that Dogecoin experienced a massive 10-fold gain within a single day in early January 2021. In contrast, RUNE‘s market cap saw an impressive jump from $200 million to a staggering $5 billion over the course of five months.

During the 2021 altcoin surge, Filecoin came extremely close to matching Ethereum’s current market value, reaching an impressive nearly $400 billion.

As a crypto investor, I’ve seen some remarkable growth in the market. For instance, I remember when AXS had a market capitalization of just $200 million and its Fully Diluted Value (FDV) was a mere $43 billion at its peak. Today, it’s hard to believe that was the case!

In just under a month, the market capitalization of meme coins like Shiba Inu (SHIB) surged from $4 billion to an astounding $40 billion. Similarly, Ethereum Cash (ETC) experienced significant growth over a five-month period, increasing its market cap from $600 million to an impressive $17 billion.

During the 2021 bull market, we witnessed significant spikes that emphasize the capacity of alternative cryptocurrencies (altcoins) to drastically increase in value when the altcoin rally occurs and the focus on Bitcoin as the market leader shifts towards other digital currencies.

Meme coins, as forecasted by DeFi Villain, are predicted to experience a “sharp and intense” final surge in this market cycle, potentially reaching new peak prices.

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, fell under the category of a security. Yet, with the recent approval of Ethereum Spot Exchange Traded Funds (ETFs), the SEC has now officially acknowledged Ethereum as a non-security.

Paul Grewal, the Chief Legal Officer of Coinbase, pointed out the inconsistency in the SEC’s stance. 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 in a similar manner without these agreements, should likewise be considered a non-security.

Grewal raised an intriguing query concerning the SEC’s classification of 12 other cryptocurrencies, similar to Ethereum and Bitcoin in their non-security status. However, the Coinbase Chief Legal Officer mentioned that these 12 cryptos could still be deemed securities, even without contractual obligations or undertakings. This brings up concerns about the SEC’s potential lack of clear regulations and inconsistent approaches towards various crypto assets.

Read More

2024-05-24 21:41