5 min readEther soars above $3500 amid ETF optimism.
- Ether rallies 17% to a high of $3700.
- Reports that the SEC is requesting updated filings drive approval optimism.
- Before the report, the SEC was considered against ETH ETF approval.
- Could approval drive ETH/USD to ATHs?
Ether surged 17% on Monday and is extending this gain in early trade on Tuesday amid optimism surrounding the Securities and Exchange Commission’s decision on spot ether exchange-traded funds, which could come this week.
Ether has led the rally across the crypto space, rising above $3,500 to a high of $3,700. However, other coins have latched on to the optimism, with Bitcoin rising over 7% yesterday before extending gains to a high of 71,900 today.
Gain has also been seen in crypto-related equities, with Coinbase and MicroStrategy rising around 2% in extended trade.
The moves come as the market reassesses the likelihood that the SEC will give the go-ahead to spot ETF applications. Coindesk has reported that the SEC requested filing updates from potential ETF issuers and exchanges ahead of a key deadline for the approval of funds later this week.
While the report said there was still no guarantee that the regulator would approve spot ETH ETFs, it did mark some progress towards approval.
Final decisions on VanEck and Ark Invest’s applications are due this Thursday and Friday, and decisions for BlackRock, Fidelity, Invesco Bitwise Asset, and Grayscale are due later this year.
Following the report, Bloomberg analysts James Seyffart and Eric Balchunas upwardly revised their expectations for SEC’s ETH ETF approval from 25% to 75%.
Meanwhile, a poly market contract, which enables users to trade on the world’s highly debated topics, asking if an ETH ETF would be approved on May 31 increased from $0.10c to $0.55c, representing a 55% chance of approval on the given date. Meanwhile, another poly market contract asking if spot ETH could be approved by June 30 was 68%.
Before today’s report, the SEC was primarily opposed to a spot Ether ETF, particularly in light of its action against the Ethereum Foundation over whether Ether was a security. However, the latest development has really changed the mood surrounding approval.
What would ETF approval mean for Ether?
In a similar manner to how the spot Bitcoin ETF approval was a fundamental moment for Bitcoin, the approval of Ethereum ETFs could also be a historic moment for Ethereum. The decision could change the investment landscape for Ether, providing a route for institutional investors to gain exposure to the cryptocurrency. This, like what we see with Bitcoin, could lift ETH prices by driving demand, increasing liquidity, and calming the volatility of Ether.
At the same time, the approval could further legitimize Ether, increasing its appeal to retail and institutional investors alike.
In the months following the spot Bitcoin ETF’s approval, the Bitcoin price surged to fresh all-time highs. It wouldn’t be unreasonable to expect a similar move in ETH/USD following the Ether ETF approval.
Sources:
https://watcher.guru/news/sec-asks-exchanges-to-update-19b-4-filings-for-spot-ethereum-etfs
Author
Risk Disclaimer
