Markets
The cryptocurrency market is rising as the SEC moves forward with its Ether ETF trial
May 20, 2024 6:12 pm | 2 minute read
Cryptocurrency prices surged Monday evening as new details emerged about the Securities and Exchange Commission prosecuting America’s first institution exchange-traded funds Jack Ethereum (CRYPTO: ET).
What happened: On Monday, the SEC’s Division of Trading and Markets instructed asset managers to review their 19b-4 filings, which are typically used to request the SEC’s permission to change their regulations for listing a new type of ETF, second at the Wall Street Journal.
This move was seen as a positive development by many investors, leading to a surge in cryptocurrency prices. Updated documents are expected to be published in the near future, WSJ reports.
Despite the lack of communication between SEC staff and potential ETF issuers, the SEC’s decision to instruct asset managers to amend their filings has raised hopes for approval of the Ether ETF this week, according to the Journal. This led to an 18% increase in the price of Ether and a more than 5% increase in the price of Bitcoin (CRYPTO: Bitcoin).
Because matter: The potential approval of an Ether ETF represents a significant development for the cryptocurrency market. Ether is the second largest cryptocurrency after Bitcoin, and an ETF would make it easier for investors to gain exposure to this digital asset.
What’s next: Updated 19b-4 documents are expected to be released in the next few days, WSJ reports. Some analysts have raised their estimates for an ether ETF approval to 75% following this development.
See also: Coinbase Says Ethereum ETF Approval Is More Likely Than You Think – Here’s Why
Because matter: Recent SEC actions have raised hopes for the approval of Ether ETFs, with analysts Eric Balchunas and James Seyffart raising the odds from 25% to 75% on Monday. However, they later clarified that the odds were tied to 19b-4 approvals, not final ETF authorization.
The SEC is expected to make a decision on VanEck’s spot ether ETF on Thursday. The SEC has been investigating whether Ether, the main native asset of the Ethereum blockchain, is a security. If deemed a security, this could be grounds for the regulator to reject Ether ETF spot applications.
What’s next: The potential approval of Ether ETFs has already had a significant impact on the market. Following the news, Bitcoin rose above $70,000 and Ethereum price increased by 14%.
The co-founder of Ethereum, Vitalik Buterinrecently praised the platform’s culture of welcoming criticisma sentiment that was met with mixed reactions on social media.
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock.
ENTER TO WIN $500 IN STOCKS OR CRYPTO
Enter your email and you’ll also receive Benzinga’s latest morning update AND a free $30 gift card and more!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.