Ethereum price surges 21% as analysts think SEC considers ETF

The U.S. Securities and Exchange Commission (SEC) has requested that exchanges update their filings for spot Ethereum (ETH) exchange-traded funds (ETFs) by submitting new Form 19b-4 on an “accelerated basis.”

According to Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart, the SEC’s request suggests a possible approval of the Ethereum ETF applications by the upcoming Thursday deadline, marking the issuance of the second spot digital asset ETF in the United States.

Prior to the updated Form 19b-4 request, Balchunas and Seyffart estimated the odds of Ethereum ETF approval at 25%. However, following the SEC’s request, they have increased their prediction to 75%. Balchunas believes that the approval expectations are merely “wishcasting” despite the optimism within the crypto community.

The next steps

For the ETFs to launch, the SEC must approve both the 19b-4s for exchange rule changes and the S-1s for registration statements, according to Nate Geraci, president of The ETF Store. A potential approval of spot Ethereum ETFs could signal a significant shift in U.S. crypto policy.

Variant Fund Chief Legal Officer Jake Chervinsky stated that an approval would be a “true shock” to those closely involved in the process in Washington, D.C. He added that the approval could indicate a major change in U.S. crypto policy following the SAB 121 vote, which may be even more significant than the ETF itself.

Seyffart agreed with Chervinsky’s assessment, noting that during a recent Blockchain Summit in D.C., almost everyone believed the ETFs would be denied. Approval of the ETFs could portray the Biden administration as more crypto-friendly and would follow the launch of a similar product in Hong Kong in early May.

Ethereum’s price increased by over 21% to its current price of nearly $3,800 on the back of the news.

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