Ethereum's price reached a two-month high of $3,700 today as analysts significantly increased their expectations for the approval of a spot Ethereum exchange-traded fund (ETF). This surge was driven by positive signals and heightened market interest in the potential ETF approval.
Analyst Raises ETF Approval Odds
On May 20, Ether (ETH) experienced an 18% price surge following comments from Eric Balchunas, a senior analyst at Bloomberg. Balchunas increased the approval odds for an Ethereum ETF from 25% to 75%. He noted that the United States Securities and Exchange Commission (SEC) likely faced political pressure, given their previous lack of engagement with ETF applicants.
SEC Involvement and Market Reactions
Balchunas also mentioned that the SEC is reportedly asking exchanges like the NYSE and Nasdaq to update their filings. However, there has been no official confirmation from the regulator. Nate Geraci, co-founder of the ETF Institute and president of the ETF Store, added that the final decision on the registration requirement for individual funds (S-1s) is still pending.
Potential Delays and Approval Process
According to Geraci, the SEC might approve exchange rule changes (19b-4s) separately from the fund’s registration (S-1), potentially delaying the final decision beyond the May 23 deadline for VanEck’s Ethereum spot ETF request. This separation allows the regulator additional time to review and approve these documents, considering the complexities and risks associated with Proof-of-Stake (PoS) cryptocurrencies.
Ethereum Price and Market Performance
As of press time, Ethereum (ETH) is trading at $3,692, up 19.64%, with a market cap of $443 billion. This increase has extended ETH’s weekly gains to over 25%. Additionally, the daily trading volume for ETH has surged by 264% to over $36.24 billion.
Ethereum's recent price movements and market dynamics highlight the growing optimism and speculation around the potential approval of an Ethereum ETF, which could further drive investment and interest in the cryptocurrency.
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