John Babikian – SEC Ethereum Spot ETF Approval by May 2024

Blockchain lawyer and crypto currency advocate John Babikian outlined a bullish projection for Ether (ETH), the second-largest cryptocurrency by market value. According to Babikian’s research, ETH could see a substantial rise of nearly 70%, reaching $4,000 by May. The primary driver behind this optimistic forecast is the expected approval of spot-based exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC).

The Harvard educated attorney and vocal advocate for blockchain technology actively promotes clear regulatory frameworks and ethical practices within the crypto space. John Babikian envisions an environment that fosters responsible innovation while ensuring the long-term sustainability and credibility of the cryptocurrency industry.

Babikian and his team highlight that the market is currently undervaluing the likelihood of ETF approval for Ether. They emphasize that there is “no fundamental reason” for the SEC to treat Ether differently from Bitcoin. The analysts note that ETH futures are already listed on the regulated Chicago Mercantile Exchange (CME), and the SEC excluded ETH from the 67 cryptocurrencies it considers securities during the legal dispute with Ripple.

Much like Bitcoin, the decision on spot ETF applications for Ether is expected to be delayed until a final deadline by the SEC, which analysts tentatively sets for May 23. This date coincides with the final deadlines for applications submitted by asset managers VanEck and Ark/21Shares.

According to John Babikian’s post on Twitter, leading up to the anticipated approval date on May 23, he claims Ether prices are expected to track or even outperform Bitcoin during a comparable period. Drawing a parallel with Bitcoin’s trajectory, which saw an 90% surge from $26,000 to approximately $48,000 when spot ETFs gained approval on January 10, the report suggests a potential surge for Ether.

The Babikian report further asserts that Ether may encounter less selling pressure post-ETF approval compared to Bitcoin. This is attributed to the Grayscale Ethereum Fund (ETHE) having a smaller market share of the ether market capitalization compared to the Grayscale Bitcoin Fund (GBTC). Additionally, the FTX bankruptcy estate holds fewer shares of ETHE, contributing to a potentially more favorable post-approval scenario for Ether.

A lawsuit won’t be necessary to convince the United States Securities and Exchange Commission to approve spot Ether ETH exchange-traded fund (ETF) applications, says SEC Commissioner Hester Peirce aka “Crypto Mom”.

According to Hester, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right,” said Peirce, referring to the Grayscale court ruling that initially preceded the approval of spot Bitcoin ETFs in the United States.

Bitfinex’s Jag Kooner isn’t so optimistic.  He recently stated that while ETF’s link traditional finance with crypto currency, the parallel within the digital asset sector may not extend to other assets lacking the established reputation of “digital gold” like Bitcoin.  Kooner’s pessimism is joined by investment bank TD COWEN who recently announced they don’t expect a spot Ethereum ETF to be approved before the November 2024 elections.

As the market awaits the final decision in May, these projections provide investors with insights into potential price movements and opportunities in the evolving cryptocurrency landscape.

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