Kaiko Predicts Ethereum Bull Run Inevitable Following Spot ETH ETF Approvals

Market analyst firm Kaiko predicts that Ethereum bull is inevitable in the long-term growth despite potential downward pressure from the Grayscale sell-off. 

Kaiko acknowledged that Ether (ETH) has rallied by over 20% over the past two weeks. The crypto market analyst firm predicts that while Ethereum will suffer downward pressure in the event of a Grayscale sell-off, an Ethereum bull run is inevitable in the long term. 

Kaiko predicts that the Ethereum (ETH) price could garner bullish steam following the approval of spot Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). 

Kaiko Forecasts Ethereum Bull Run Looms in the Long-Term

The market analyst reflects on the stunning turnaround by the Wall Street regulator to end the delays and absent engagement with the asset managers seeking spot ETH ETF approval. 

Crypto industry observers forecast that the second-largest digital token by market value could shoot even higher. Market data firm Kaiko revealed that the Ethereum price would slip if the Grayscale Ethereum Trust (ETHE) bleeds. 

The market analyst revealed on Monday, May 27, that Ethereum’s value would garner bullish steam over the long term. The firm reflected on the Bitcoin trend following the ETF approval of the SEC in January.

Kaiko acknowledged that the investors whose money remained locked into the Grayscale Bitcoin Trust (GBTC) quickly cashed out upon its conversion into an ETF. The process exerted downward pressure on Bitcoin, pushing the price down in the short term.  

The firm indicated that the approval of S-1s by the SEC for the spot ETH ETFs to launch would yield reasonable selling pressure on the token as investors redeem investment in Grayscale’s ETHE. The firm added that ETHE is trading at a discounted price in the 6-26% range over the past three months.  

The market data firm observed that if inflows were to disappoint in the short window, the spot ETH approval would yield significant implications for the ETH. Kaiko considers that the approval will eliminate the regulatory uncertainty regarding ETH status, which ultimately restricted its performance over the last 12 months. 

Market Analysts Predict Ethereum Bull as ETH ETF Approved Trade

The derivatives executive at blockchain data provider Amberdata, Greg Magadini, affirmed the existence of a bull run attributed to the spot ETH ETF approval even when the actual trading date remains uncertain. 

The US largest bank, JPMorgan, predicted on Friday, May 24, that spot ETH ETFs will be unveiled by November. The trading will offer investors the sought exposure to the ETH through shares legally traded on the stock exchange. 

In the past, Wall Street’s lead regulator had portrayed a snail’s pace in responses to the ETF applicants and often pushed back decision deadlines. CoinShares and Bloomberg’s analysts projected that ETH ETFs would not secure the green light by the May timeline, only to do a 180-turn. 

The ETH ETF fortune changed last week when Bloomberg ETF analysts revised the likelihood of the product’s approval upwards. Days later, the SEC affirmed its approval of the incredible elation of the crypto industry. 

Ethereum 20% Below Highest Price

The Ether price has surged upwards to test $3,968 on Monday. Further scrutiny into the Ethereum (ETH) market activity shows $17.981 billion trading volume in the last 24 hours. Such represents a 5.30% increment, signaling a recent uptrend in the market activity per CoinGecko data.

The boom marked a 30% uptrend in price over the last 14 days, per CoinGecko data. Nonetheless, Ethereum remains over 20% below the all-time high of $4,878 realized in 2021.