On May 21, 2024, the Ethereum rate tested the level of $3,700, according to TradingView. The price rose amid positive expectations surrounding the US Securities and Exchange Commission (SEC) decision regarding asset-based spot ETFs.
At the time of writing, the coin is trading just below this level. The increase per day, from May 20 to May 21, 2024, was almost 24%:
A similar situation can be seen on the Ethereum price chart in bitcoins. However, in this case, the increase was slightly lower in percentage terms, which can be explained by the growth of the first cryptocurrency:
Preconditions for growth
On May 23, 2024, the SEC is scheduled to make a decision on spot Ethereum ETFs. The head of the consulting company The ETF Store, Nate Geraci, believes that the Commission will compromise.
At the same time, Bloomberg Intelligence analysts Eric Balchunas and James Seyffarth said they had revised their opinion on this issue. They raised the likelihood of approval of a new class of exchange-traded funds from 25% to 75%.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Both experts also cited that the SEC will likely still approve Form 19b-4 filings, which involve a change in the current rules. Note that this does not mean that the regulator will allow the launch of funds, but it significantly increases the likelihood of this.
Following this publication CoinDesk Citing its sources, it said that the SEC has asked ETF providers to urgently amend Forms 19b-4. One of the sources noted that the regulator’s rhetoric has changed, and now the Commission is not trying to delay the process.
However, the SEC may need additional time to review S-1 forms that directly involve the launch of new products.
The situation on the cryptocurrency betting platform Polymarket is indicative. Per day probability of approval of spot Ethereum ETFs by the end of May 2024 jumped up from 10-11% to more than 60%. This reflects positive investor expectations.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
