Ethereum’s ether pushes past $4,000 for the first time – and one crypto analyst who correctly predicted this level now expects it to hit $10,000

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Ether recorded its biggest one-day gain in two years on Monday as the second-largest cryptocurrency smashed past $4,000 for the first time.

Ethereum’s digital token rose 7% in the past 24 hours to trade at about $4,165 as of 5:20. a.m. ET, according to data from CoinMarketCap. This milestone was achieved after ether’s value increased 16% increase in just five days.

This momentum is likely being driven by the asset manager VanEck filing to list an Ethereum exchange-traded fund. The firm has already applied to list a bitcoin ETF, for which the Securities and Exchange Commission has delayed its decision until July.

More investors are betting ether will be fueled by a rise in the use of decentralized-finance applications and nonfungible tokens.

“Decentralized finance’s potential for replacing certain intermediaries with automated digital contracts continues to get more recognition from the traditional banking sector,” Paolo Ardoino, the chief technology officer at Bitfinex, said. “The myriad possibilities of decentralized ledger technologies should be likened to a technological force of nature that will continue to disrupt finance and other businesses.”

When ether was trading at about $1,200, the crypto analyst Megan Kaspar predicted it would hit $3,400. Kaspar, a cofounder of the digital-asset-investment company Magnetic, has now boosted her price target to between $8,000 and $10,000 by the end of 2021.

She told “Yahoo Finance Live” the Ethereum network upgrade to a less energy-intensive method than bitcoin’s, called proof of work, could boost its value even further.

“The shift to proof of stake for block validation reduces carbon emissions by 99.9%, making Ethereum a green technology,” Kaspar said. “So these two updates on the network alone could push Ethereum to a trillion-dollar market cap, which is where bitcoin is at today. That would make Ethereum around $8,000 to $10,000 a coin.”

Her prediction matches that of Fundstrat Global Advisors’ head of digital-assets research, David Grider. Grider said he expected ether to hit $10,500 by the end of the year based on market data.

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And the former Ark Invest analyst James Wang said ether could reach $40,000. The boom in DeFi applications is the major catalyst for him too, as he believes the $3 trillion global banking and auditing industry could be more efficient with software.

“So that’s $3 trillion of existing revenues up for grabs,” he said. “If Ethereum captures just 1% of that economic revenue, ether would be around $40,000.”

Its rival currency bitcoin is up 1% in the past week. Insider spoke with 10 experts about which of the two they’d rather invest in and why.

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VanEck files with the SEC for an Ethereum ETF as it waits for the regulator to approve its bitcoin fund

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Ether is the cryptocurrency of the Ethereum network.

  • Asset manager VanEck has filed to list an Ethereum exchange-traded fund.
  • The firm is seeking SEC’s permission to list shares of its VanEck Ethereum Trust.
  • The SEC delayed a decision on whether to greenlight VanEck’s bitcoin ETF until July.
  • See more stories on Insider’s business page.

Asset manager VanEck is seeking US regulatory approval to launch an Ethereum exchange-traded fund, with the move taking place as the company waits for word on whether it will be able to introduce trading of the first bitcoin ETF in the US.

The VanEck Ethereum Trust would list shares on the Cboe BZX Exchange, according to an S-1 filing with the Securities and Exchange Commission on Friday.

The firm said the trust, in aiming to reach its investment objective, will hold ether, the currency native to the Ethereum blockchain network, and value its shares daily based on the reported MVIS CryptoCompare Ethereum Benchmark Rate. Ether is the world’s second-largest cryptocurrency by market capitalization, behind bitcoin.

VanEck and the Cboe are waiting for the SEC to render a decision on whether it can list a bitcoin ETF, which the asset manager applied for in March. The regulator last week delayed a decision until at least July 17, leaving investors waiting on the US to greenlight the country’s first bitcoin ETF.

Wall Street institutions are increasingly embracing or signaling openness to including cryptocurrency into their operations. This week, S&P Dow Jones index announced the launch of three indices tracking the performance of the bitcoin and ethereum – the S&P Bitcoin Index, S&P Ethereum Index, and the S&P Cryptocurrency MegaCap Index.

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Evolve Funds files for Ether ETF weeks after winning Canadian approval for its bitcoin fund

FILE PHOTO: Representation of the Ethereum virtual currency standing on the PC motherboard are seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Representation of the Ethereum virtual currency standing on the PC motherboard are seen in this illustration picture


Just weeks after winning approval for one of North America’s first bitcoin ETFs, Evolve Funds is looking to give investors exposure to Ether. 

On Tuesday Evolve Funds announced it has filed a preliminary prospectus with the Canadian securities regulator for an Ether ETF. 

If approved, the fund (ETHR) would give investors exposure to the daily price movements of the US dollar price of Ether, the world’s second largest cryptocurrency. 

“Ether is the building block for a revolution in digital finance which is still in its infancy,” said Evolve CIO and COO Elliot Johnson in a press release. “All Ether transactions are recorded on the Ethereum computer network, which is a decentralized, open-source blockchain featuring smart contract functionality. Ethereum is the most actively used blockchain with Ether being used to pay for transaction fees and computational services.”

Evolve’s filing comes after CI Global Asset Management and Mike Novogratz’s Galaxy Digital filed a similar prospectus for an Ether ETF last week. 

Canada has not yet approved an Ether ETF, but it approved two publicly traded bitcoin ETFs this year. The funds exploded during their first days of trading. The Purpose Bitcoin ETF traded $165 million-worth of shares in its first day, while the Evolve Bitcoin ETF raised $421 million in two days, according to Bloomberg

Canada’s crypto-positive stance is raising hopes that the US will soon follow suit. In the latest attempt to launch a bitcoin ETF in the US, the Chicago Board Options Exchange filed an SEC request for approval of VanEck’s bitcoin ETF on Monday.

 

 

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