TL;DR
- The decision on the approval of the Ethereum ETF is imminent, with expectations of a significant impact on the market.
- Large financial firms, including BlackRock, have adjusted their ETF filings with the SEC, suggesting a high likelihood of approval.
- An investment idea is proposed that reflects confidence in the approval of the Ethereum ETF and the upside potential of the asset.
The expectation about the possible approval of the Ethereum ETF has generated great attention in the crypto market.
With the SEC close to making a decision, implied volatility is expected to result in significant price movements, according to a recent news story from QCP Broadcast.
The recent adaptation of ETF filings by financial giants like BlackRock, along with the inclusion of the VanEck ETF on the DTCC list, indicate a high probability of approval, which could result in the ETF trading as soon as the next week.
In this context, an investment idea has been proposed that reflects confidence in the approval of the Ethereum ETF and the upside potential of the asset.
The proposed investment structure, known as “ETH Enhanced Sharkfin (Principal Protected)“, offers an attractive return with protection against adverse market movements.
Due in September 2024, the investment offers a base coupon of 3% per year, with a strike price of 4,500 and a knockout level of 6,000.
Investors could get up to 98% annual payout if Ethereum price expires just below 6000 at expiration, even in case the asset falls below the strike price, they would receive a 3% annual coupon.
The impact of the approval of the Ethereum ETF has been compared to the Bitcoin ETF
This latest event led to a Bitcoin price increase of more than 50% in less than a month, reinforcing optimistic expectations around Ethereum‘s potential in the event of ETF approval.
Interest in cryptocurrencies is on the rise, especially in an election year where politics is beginning to take note of its relevance.
The favorable comments towards cryptocurrencies by both former President Donald Trump and President Joe Biden point towards a political climate conducive to financial innovation, which could favor positive regulatory decisions for the crypto industry.
