Ethereum ($ETH) experienced a substantial surge in value today, skyrocketing by 14% and reaching $3,540 within just a few hours. This sudden increase can be attributed to a series of tweets from prominent figures in the financial analysis community. Eric Balchunas, Bloomberg’s senior ETF analyst, took to Twitter to announce that the estimated likelihood of a spot Ether ETF approval by the U.S. SEC has now risen to 75%, up from the previous 25%. Balchunas made this optimistic update in response to a tweet from Nate Geraci, the President of ETF Store.
In their tweet, Balchunas and fellow Bloomberg analyst James Seyffart explained that the SEC may be reconsidering its stance on the spot Ether ETF issue, which has become increasingly political. This unexpected shift has caught many off guard, as the prevailing expectation had been that the spot Ether ETF applications would be denied. Seyffart clarified that their increased odds specifically pertain to the SEC’s 19b-4 rule change approvals, which are due by May 23rd. However, the approvals for S-1 registration statements may take several weeks to months longer.
Geraci’s initial tweet highlighted the dual approval process required from the SEC for spot Ethereum ETFs to be launched, which involves both 19b-4 exchange rule changes and S-1 registration statements. He pointed out that while the SEC may approve the 19b-4 changes, they could potentially delay the S-1 approvals, resulting in a delay in overall approval.
The market responded swiftly to Balchunas’s update, not only driving up the value of Ethereum but also causing Bitcoin ($BTC) to rise by 5% and surpass the $70,000 mark for the first time in weeks. Additionally, $UNFI experienced a significant 32% increase, taking advantage of the positive market sentiment. The market is moving so rapidly that our writers had to update the price statistics multiple times while writing this article.
In recent news, QCP Capital shared unconfirmed information that the SEC has requested crypto exchanges to promptly update their 19b-4 filings. This development suggests that the approval for the Ethereum ETF may be on the horizon. However, since no one can predict with 100% certainty, the decision could go either way.
Tags: ETH