Ethereum Soars As Analysts Predict Higher Likelihood of ETF Approval

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Share

Copied

Last updated: 

May 21, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ether’s

price has surged over 20% to around $3,792, fueled by rumors that US regulators might finally approve Spot Ethereum ETFs. The price surge has surprised traders as most anticipated the SEC would delay or reject the first ether ETF by Thursday.

Standard Chartered is adding to the bullish sentiment. The bank said it is 80%-90% confident that Ether spot ETFs will launch in the US this week.

“After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval,” said Geoff Kendrick, Head of FX Research and Digital Assets Research. “In U.S. dollar terms, that equates to roughly $15 billion to $45 billion.”

Decision Day for Ethereum ETFs: Will the SEC Give the Green Light?

Adding fuel to the fire, Bloomberg Intelligence analyst Eric Balchunas significantly upped his prediction for approval, now at 75%, up from 25%.

In an X post, the analyst said he was hearing “that the SEC could be doing a 180 on this (increasingly political issue), so now everyone is scrambling (like us everyone else assumed they’d be denied).”

The US markets regulator is set to announce its decision on some Ether ETF applications this week. Analysts and investors previously thought these applications would be denied.

Meanwhile, Grayscale’s Ethereum ETF has surged by 23%, reaching $32.76 per share. And the momentum isn’t limited to Ethereum, the entire cryptocurrency market is on a tear. Bitcoin is up 5% and nearing the $70,000 mark.

After nearly a decade for spot Bitcoin ETFs to gain approval, analysts were generally pessimistic about the potential for an Ethereum ETF to follow a quicker path. However, this sentiment seems to have shifted, surprising many.

VanEck, ARK Lead Charge for Spot Ether ETFs

Now, the SEC is on the clock to decide on the first applications for spot Ether ETFs. VanEck and ARK Investment Management are at the front of the line, with deadlines for the SEC decision set for May 23 and May 24 respectively. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum.

This week, Fidelity amended its application for a spot Ether ETF with the SEC. The move follows rumors of the SEC’s policy shift on these funds, possibly due to political influence. It has reportedly asked issuers to update their applications (19b-4 filings) before moving forward.