Ethereum ($ETH) experienced a substantial surge in value today, skyrocketing by 14% and reaching $3,540 in just a few hours. This sudden increase was triggered by a series of tweets from prominent figures in the financial analysis sector. Eric Balchunas, a senior ETF analyst at Bloomberg, raised the likelihood of the U.S. SEC approving a spot Ether ETF to 75%, up from the previous 25%. This positive development was in response to a tweet from Nate Geraci, the President of ETF Store.
Balchunas, together with his colleague James Seyffart from Bloomberg, suggested that the SEC may be reconsidering its stance on the approval of spot Ether ETFs, which has become a contentious issue. The analysts highlighted that this unexpected shift has caught many off guard, as most had anticipated a rejection of the spot Ether ETF applications. Seyffart clarified that the increased odds were specifically related to the SEC’s 19b-4 rule change approvals expected by May 23rd, with potential delays in S-1 registration statement approvals, which may take weeks to months longer.
Geraci’s initial tweet outlined the dual approval process required by the SEC for the launch of spot Ethereum ETFs, involving both 19b-4 exchange rule changes and S-1 registration statements. He pointed out that while the SEC could approve the 19b-4 changes, they might postpone the S-1 approvals, indicating a potential delay in approval.
Following Balchunas’s announcement, the market reacted swiftly, not only boosting Ethereum’s value but also propelling Bitcoin ($BTC) by 5%, surpassing the $70,000 mark for the first time in weeks. Additionally, $UNFI experienced a significant 32% surge, capitalizing on the positive market sentiment. The market is experiencing such rapid fluctuations that our writers had to continuously update the price statistics during the writing process.
Recently, QCP Capital shared unconfirmed reports that the SEC has requested crypto exchanges to update their 19b-4 filings promptly. This action suggests that the approval of an Ethereum ETF may be imminent. However, the decision remains uncertain, as no one can predict with certainty the likelihood of approval.
Tags: ETH