On May 23, 2024, the Ethereum rate reached $3944 at the moment, according to TradingView. The price of the asset is rising amid positive expectations for the approval of spot ETFs based on this asset.
At the time of writing, the coin is still trading above the $3,900 level. The increase over the last 24 hours is 5%, since the beginning of May 2024 – almost 23%.
The main driver in this process, of course, is the positive expectations of traders regarding the approval of spot Ethereum-ETFs by the US Securities and Exchange Commission (SEC).
Let us remind you that the regulator must announce its decision on VanEck’s application on May 23, 2024. Experts appreciate the likelihood that the Commission will make concessions.
What is known so far?
Until the end of May 2024, analysts and cryptocurrency publications stated that there was no dialogue between the SEC and ETF issuers. This has led experts to reduce the probability of launching exchange-traded funds to 30% or lower.
However, the situation changed radically earlier this week, May 20, 2024. Nate Geraci, president of consulting firm The ETF Store, said the SEC may compromise.
This is to approve Form 19b-4 filings (rule change) but defer action on S-1 (new product launch). Following this, the media reported that the Commission asked the Nasdaq and Cboe exchanges to amend the 19b-4 filed by ETF issuers.
Against this background, Bloomberg Intelligence analysts increased the chances of approval of spot exchange-traded funds to 75%. On May 23, 2024, the media stated that the Commission had begun the process of negotiating with counterparties on Forms S-1.
Expert Eric Balchunas noted that the regulator will announce its decision approximately at 16:00 ET.
My best guess is we hear from the SEC around 4pm tomorrow. For spot btc they dropped it at 3:45pm, some others in past were slightly after 4pm. Anything poss tho https://t.co/MzTOcsmTnJ
— Eric Balchunas (@EricBalchunas) May 22, 2024
Community Opinion
Most traders, judging by some data, share the opinion of experts. Specifically, on cryptocurrency betting platform Polymarket, the approval rate for spot Ethereum ETFs jumped from 10% to 69% at its peak.
Then the figure fell slightly, which can be explained by doubts expressed, among other things, by some analysts.
The total betting pool exceeds $10.6 million. Notably, some users started a debate on whether a 19b-4 green light or an S-1 green light is considered approval for spot Ethereum ETFs.
However, it may take several months to review applications under the second form.
Source: Cryptocurrency
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