Ethereum (ETH) has surged to new heights on the back of rumours suggesting that the U.S. Securities and Exchange Commission (SEC) may be reconsidering its stance on approving a spot Ethereum exchange-traded fund (ETF).
At press time ETH was trading above $3,500 after a 15% surge.
This surge in ETH price, coupled with heightened market activity, underscores the cryptocurrency community’s growing optimism and confidence in Ethereum’s future prospects.
SEC considering spot Ethereum ETF approval
One of the primary drivers behind today’s sudden Ethereum price rise is the speculation surrounding the SEC’s reconsideration of approving the first spot Ethereum ETF.
Rumours have been circulating within the cryptocurrency community, suggesting that the SEC may be shifting its stance on Ethereum ETFs.
This newfound optimism stems from reports indicating that the SEC could be “doing a 180” on its expected denial of spot Ethereum ETF applications. According to sources familiar with the situation, the SEC has asked exchanges to update 19b-4 filings on an accelerated basis ahead of a key deadline this Thursday.
Bloomberg ETF analysts James Seyffart and Eric Balchunas, renowned for their accurate predictions, have revised their odds of approval from 25% to a staggering 75%.
The potential approval of a spot Ethereum ETF by the SEC represents a significant milestone for Ethereum and the broader cryptocurrency market.
If approved, the ETF would provide institutional investors with easier access to Ethereum, paving the way for increased liquidity and adoption.
Similar to the impact seen with the spot Bitcoin ETFs approval, the approval of an Ethereum ETF is expected to fuel a sustained uptrend in Ethereum’s price over the long term.
Ethereum (ETH) whale activity surge
The anticipation of this regulatory approval has injected a renewed sense of confidence into the Ethereum market, leading to a surge in investor interest and activity.
Following the increased optimism around Ethereum (ETH), whale activity has also surged over the past 24 hours.
In the past 24 hours, whales have made substantial purchases, acquiring over 110,000 ETH worth approximately $341 million in just 24 hours.
This influx of whales signals a strong vote of confidence in Ethereum’s future prospects and has played a pivotal role in driving up its price.
Anticipated deadline
Investors and traders are closely monitoring the SEC’s decision, which is expected to come before the looming deadline for VanEck’s spot Ethereum ETF application on May 23.
The SEC’s approval process involves considerations of exchange rule changes and registration statements, with the potential to reshape the regulatory landscape for cryptocurrencies.
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