In the last two weeks, the price of ETH has increased by over 25%, and although there may be some short-term pressure from a potential Grayscale sell off, long-term growth appears to be robust.

Following the Securities and Exchange Commission’s shocking decision to allow spot Ethereum exchange-traded funds (ETFs) last week, market analysts predict that Ethereum could soon soar higher.

Wall Street’s top regulator cleared the large list of asset managers who had filed to sell an Ethereum ETF after months of brusque delays and little involvement.

Industry watchers now predict that the value of the second-largest digital coin will increase even further.

The nearly five-year-old Grayscale Ethereum Trust (ETHE) is expected to see some outflows, which might put pressure on the price of ETH. However, data firm Kaiko predicted on Monday that ETH will appreciate in value over time.

According to Kaiko, the conclusion was reached by examining what transpired with Bitcoin ETFs after they were approved in January: investors who had invested in Grayscale’s GBTC product wanted to take their money out right away because they were unable to do so in the past. In the near run, this drove down the price of Bitcoin.

Grayscale’s ETHE, which has been trading at a discount of between 6% and 26% for the last three months, is expected to cause outflows or redemptions, which might put selling pressure on ETH once the ETH ETFs begin, the business stated.

The clearance “has important implications for ETH as an asset, removing some of the regulatory uncertainty which has weighed on ETH’s performance over the past year,” the business continued, “even if inflows disappoint in the short term.”

Even though it’s unclear when the real ETFs will start trading, Greg Magadini, director of derivatives at blockchain data provider Amberdata, told Decrypt that there is undoubtedly a “bull run here on this news.”

The largest bank in America, JPMorgan, stated on Friday that it anticipated the funds to begin trading before November.

Ethereum ETFs, like Bitcoin funds, will provide investors with exposure to ETH, the second-biggest cryptocurrency by market capitalization, through shares that trade on stock exchanges when they eventually reach the market.

The largest regulator on Wall Street has delayed making decisions and responded to applicants slowly. According to analysts from sites like CoinShares and Bloomberg, these cryptocurrency funds won’t receive approval before the deadline in May.

However, last week, there were rumours circulating that the regulator would approve the proposed products, which caused everything to change. Days later, it did, much to the euphoria of the cryptocurrency world, but without a press release or statement.

This caused the price of ETH to surge further. According to CoinGecko data, it reached $3,968 on Monday, indicating a more than 30% increase over the previous two weeks.

ETH still has to climb more than 20% to pass its 2021 all-time high of $4,878.