On Monday, the price of Ethereum surged to $3,900, driven by a wave of bullish sentiment among investors. Ethereum (ETH) is poised to surpass the $4,000 mark even before the launch of spot Ethereum exchange-traded funds (ETFs), according to DeFiance Capital founder Arthur Cheong.

In a social media post on May 26, Cheong forecasted that Ethereum, the second-largest cryptocurrency by market value, could climb to $4,500 ahead of the ETF trading launch. He referenced a poll indicating nearly 50% of respondents have allocated only up to 25% of their portfolios to Ethereum, suggesting the market may be underestimating its potential.

ETH as a percentage of your crypto portfolio now

The U.S. Securities and Exchange Commission (SEC) approved multiple spot Ethereum ETFs on May 23, following a series of delays. This decision has heightened investor expectations that traditional market participants will inject new capital into Ethereum, similar to the surge seen with spot Bitcoin ETFs that helped BTC reach a new all-time high of $73,750 in March.

However, ETF issuers still require the SEC’s approval for their registration statements, which detail investor disclosures. Unlike exchange filings, there is no set timeline for the SEC to approve these statements, creating uncertainty about the launch date for trading.

A source familiar with the matter indicated the trading approval process could take days or weeks, without providing specific details. Former SEC Chairman Jay Clayton, in an interview, stated that the start of spot ETH ETF trading is a matter of when, rather than if, describing it as “inevitable” but acknowledged some unresolved issues. As of press time, Ethereum is trading at $3,910.

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