On May 26, crypto entrepreneur Arthur Cheong made an interesting prediction about the price of Ethereum (ETH), and his justification for this prediction was even more interesting.

Cheong is a prominent figure in the cryptocurrency industry, known primarily for founding DeFiance Capital, a leading investment firm focusing on decentralized finance (DeFi) and crypto gaming sectors. Established in 2020, DeFiance Capital quickly gained recognition for its strategic investments and active involvement in the DeFi space.

Cheong’s background includes significant experience in crypto investing, startups, and oil trading. Under his leadership, DeFiance Capital has managed to navigate various market challenges, including the collapse of Three Arrows Capital (3AC), with which it was previously associated. Despite these hurdles, DeFiance Capital successfully raised significant funds, such as the first close of a $100 million liquid token fund in early 2024, indicating investor confidence in Cheong’s vision and strategy.

Cheong said in a post on the social media platform X (formerly known as Twitter) that he expects the ETH price to reach $4,500 before trading in US-based spot Ethereum ETFs starts. The reason for Cheong’s bullishness seems to be how few people on CT (which stands for Crypto Twitter, or the crypto community on Twitter) have ETH as part of their crypto portfolio.

As Bloomberg analyst James Seyffart reported, on May 23, the U.S. Securities and Exchange Commission (SEC) approved 19B-4 filings for multiple spot Ethereum ETFs from sponsor exchanges NYSE Arca, Inc, the Nasdaq Stock Market LLC, and Cboe BZX Exchange Inc.

However, as former SEC Chair Jay Clayton explained during an appearance on CNBC’s “Squawk Box” on May 24, there are two steps in the approval process for such products. The first step, which was achieved, is the listing approval. The second step, which is pending, is the approval of the product itself, involving the registration statement. The approval of the listing does not mean that trading can begin immediately. It signifies a step towards inevitability, similar to the process with Bitcoin ETFs.

The approval process is not yet complete, as the ETF issuers still need the SEC to approve their registration statements detailing investor disclosures. While there is no set timeline for this, industry participants believe that many issuers are ready to launch once they receive the green light. However, the SEC’s corporate finance division is expected to request changes and updates in the coming days and weeks.

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