Ethereum
Ethereum Price Soars on Higher Likelihood of ETF Approval
Last updated: May 22, 2024 12:50 a.m. EDT | 1 minute reading
Ether the price surged more than 20% to around $3,792, fueled by rumors that US regulators may finally approve Spot Ethereum ETFs. The price surge surprised traders, as most expected the SEC to delay or reject the first ether ETF by Thursday.
Standard Chartered adds to the bullish sentiment. The bank said it was 80-90% are convinced that Ether spot ETFs will launch in the United States this week.
“Following approval, we estimate that spot ETFs will generate inflows of 2.39 million to 9.15 million ether in the first 12 months following approval,” said Geoff Kendrick, head of research at foreign exchange and digital asset research. “In U.S. dollar terms, that equates to about $15 billion to $45 billion.”
Decision Day for Ethereum ETFs: Will the SEC Give the Green Light?
To add fuel to the fire, Bloomberg Intelligence analyst Eric Balchunas significantly increased his approval forecast, now to 75%, up from 25%.
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The US markets regulator is expected to announce its decision on certain Ether ETF applications this week. Analysts and investors previously thought these requests would be denied.
In the meantime, Grayscale Ethereum ETF jumped 23%, reaching $32.76 per share. And the momentum isn’t limited to Ethereum, the entire cryptocurrency market is booming. Bitcoin is up 5% and approaching the $70,000 mark.
After nearly a decade of approving spot Bitcoin ETFs, analysts were generally pessimistic that an Ethereum ETF would follow a faster path. However, this sentiment seems to have changed, which surprises many.
VanEck and ARK lead fees for Spot Ether ETFs
Now, the SEC is in a hurry to rule on the first applications for spot Ether ETFs. VanEck and ARK Investment Management are first in line, with deadlines for the SEC’s decision set for May 23 and May 24, respectively. These issuers, along with seven others, are seeking permission to launch ETFs that directly track the price of Ethereum.
This week, Fidelity has modified its request for a spot Ether ETF with the SEC. The move follows rumors that the SEC has changed its policy on these funds, possibly due to political influence. It would have asked issuers to update their applications (19b-4 filings) before moving forward.