Asset management firm Fidelity has filed for an Ethereum Exchange Traded Fund (ETF) with the US Securities and Exchanges Commission (SEC). Experts suspect that the filing could encourage ETH to rally.
According to Fidelity, investors in the United States have no regulated way to gain exposure to Ethereum. Therefore, it proposed listing and trading its planned Ethereum ETF shares on the Cboe BZX Exchange
Ethereum ETF could shake up the market
Given recent market dynamics, Fidelity’s entry into the Ethereum ETF space is expected to potentially trigger an uptrend in ETH price. Notably, the SEC recently reviewed several applications for a spot Bitcoin ETF from major traditional financial institutions such as BlackRock.
This development pushed the BTC price to new annual highs amid the resulting market optimism. Nevertheless, the SEC announced that it will delay its decision on several spot Bitcoin ETF applications until 2024.
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
Spot crypto ETFs are investment vehicles that track the price of the underlying asset and allow investors to participate in it without direct ownership. Analysts assume that such offers could make it easier to enter the crypto market.
With Fidelity ranked as the third-largest asset manager in the world and managing $4.2 trillion in assets under management, its stake could spark increased interest in Ethereum.
ETH price offers buying opportunity
Against this backdrop, market experts emphasize the potential for ETH to perform positively, especially as several major financial institutions have applied for Ethereum spot ETF offerings.
“You have a lucky chance to grab ETH under $2,000 while it is available. This opportunity won’t be around for long,” said a veteran crypto analyst.
Read more: 7 must-have cryptocurrencies for your portfolio before the next bull run
Likewise, Ali Martinez, Global Head of News at BeInCrypto, highlighted the bullish potential that Ethereum could have once it clears the $2,150 resistance level. Martinez noted that any dip towards $1,700 could represent a one-time buying opportunity before the uptrend resumes.
“ETH is testing a major resistance zone between $2,000 and $2,150, which coincides with the x-axis of an ascending triangle pattern. A pullback from this resistance level could lead to a decline towards the hypotenuse of the triangle at $1,700, setting the stage for a possible continuation of the uptrend,” Martinez explained.
Ethereum price development. Source: TradingView
Data from BeInCrypto shows that Ethereum was trading at $1,966 at press time, up nearly 2% in the last 24 hours.
Disclaimer
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Originally posted 2023-11-19 11:38:46.