Spot Ethereum ETF Approval 'Not Even Remotely Priced In,' Warns Trader Who Sees 'Ethereum Overperforming From US Elections Onwards'

Economist and crypto trader Alex Krüger recently shared his base case scenario for the crypto market, offering incisive predictions about Bitcoin BTC/USD and Ethereum’s ETH/USD future price trajectories.

What Happened: Krüger’s base case scenario is "Bitcoin much higher into year-end, with Ethereum underperforming due to a possible ETF rejection. He also predicts that the forthcoming U.S. elections could change the landscape dramatically and a change in regulatory leadership, potentially leading to Gary Gensler's removal, would pave the way for an Ethereum ETF approval in 2025. "Ethereum overperforming from the U.S. elections onwards," he suggests.

Yet, should an Ethereum ETF approval come as early as this week, Krüger argues that it would accelerate everything significantly. Commenting on the immediate reaction of Ethereum, he states "Today's move was just the market repositioning and shorts closing."

An unexpected ETF approval could unleash substantial inflows, driving Ethereum to new all-time highs. "Do not fade an approval. It is not even remotely priced in," Krüger warns. However, ETH/BTC continues to remain in red year-to-date, presenting an opportunity for considerable upward momentum.

Also Read: Ethereum Prints ‘Banana Zone Candle’ With Largest One-Day Market Cap Gain At $71B Following Potential ETF Approval

Why It Matters: The potential for an ETF rejection is not dismissed lightly. Krüger acknowledges the significant downside risk, stating, "If the ETF gets rejected, we are in for a world of pain." Therefore, he advises traders to stay vigilant and keep alerts active during U.S. trading hours until the decision on May 23.

Bloomberg ETF analysts updated their approval chances to 75% on Monday.

In conclusion, Alex Krüger's analysis highlights the dramatic influence an Ethereum ETF decision could have on the market. Whether it comes this week or post-election, the approval could catalyze a major bullish run for Ethereum. However, traders should remain cautious and prepared for the potential fallout of a rejection.

What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Big Ethereum Whale Adds On To Bullish Long Position As Spot ETF Approval Probability Jumps — Swaps Wrapped Bitcoin Worth Over $25M For ETH

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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