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Ether Jumps Most in 18 Months on ETF Approval Speculation
(Bloomberg) — Ether saw the biggest rise in 18 months, leading a rally in digital assets, amid growing speculation that opposition is waning among regulators over the approval of one or more exchange-traded funds that invest directly in the second largest cryptocurrency.
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Ether rose 14% to around $3,490 as of 4:49 p.m. in New York. Bitcoin also extended its gains, climbing 5% to $69,442.
The blockchain’s native token Ethereum extended gains after Bloomberg Intelligence ETF analyst Eric Balchunas said he and colleague James Seyffart increased the estimated probability of a spot-Ether ETF being approved by 25%. at 75%.
The Securities and Exchange Commission on Monday asked an issuer of a potential spot-Ether ETF to update its 19b-4 filing, according to a person familiar with the matter who asked not to be named discussing confidential information. A 19b-4 is a form used to notify the SEC of a rule change that would allow the fund to trade on an exchange. ETF issuers must obtain both this filing and an SEC-approved S-1 registration statement before products can be officially launched.
Traders and analysts on social media are now “speculating that the SEC may be more likely to lean toward potential approval, and traders are now scrambling to take positions since many have completely ruled out even the remote possibility of approval.” , said Chris Newhouse. , decentralized finance analyst at Cumberland Labs.
“Massive spikes in volume and demand for spot and leveraged positions are apparent in the markets and the outperformance of ETH versus BTC indicates that the potential catalyst of the ETH ETF is the main driver” , he added.
Read: Fund managers prepare for SEC rejection of Ether-ETF applications
After months of silence, the U.S. Securities and Exchange Commission is set to announce a decision on at least one ETF application that invests directly in Ether by May 23. Some fund companies expect rejection because their private dialogue with the SEC was unsuccessful. was as robust as before spot-Bitcoin ETFs were approved in January, Bloomberg reported Friday, citing two people familiar with the matter, who asked not to be named in private discussions.
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Despite Monday’s rally, not all traders were convinced that the SEC is preparing for an Ether ETF.
“The FalconX derivatives desk has seen the majority of our counterparties tone down the move expecting the SEC to move more slowly than markets anticipate,” said Ravi Doshi, head of markets at FalconX.
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