Ethereum
What will happen to ETH prices?
As the clock ticks down to the much-anticipated verdict on the first Ethereum Exchange-Traded Fund (ETF), market enthusiasts are holding their breath waiting for the SEC’s decision. VanEck’s claim will go to trial on May 23, followed closely by Ark 21Shares on May 24.
This decision does not only concern VanEck and Ark 21Shares. This is a pivotal moment that could shape destiny of several other hopefuls, including Hashdex, Grayscale, Invesco Galaxy, BlackRock and Fidelity, all eagerly awaiting their regulatory fate.
Friends, it’s make-or-break time!
On May 20, ETF Store President Nate Geraci emphasized that SEC approval depends on both 19b-4s (exchange rule changes) and S-1s (registration statements). Although it is “technically possible” that the SEC would greenlight 19b-4s and then pause on S-1s, dialogue with issuers has been limited.
Understanding 19b-4 and S-1
19b-4, filed by national securities exchanges like the NYSE or Nasdaq, is the gateway to changing the rules or introducing new products, such as spot ETH ETFs. Meanwhile, the S-1 provides a detailed breakdown of the company’s operations and offerings.
Industry veteran “Gronky”‘s insights on
Key players
Only five SEC commissioners will vote to approve or deny VanEck’s ETF. Gary Gensler, who voted to approve spot Bitcoin ETFs in January, is one of them.
The other four are pro-crypto Commissioners Hester Pierce and Mark Uyeda and anti-crypto Commissioners Caroline Crenshaw and Jaime Lizárraga. This lineup suggests that Gensler’s vote could once again be the deciding factor.
What if the ETH ETF is approved?
If the SEC gives the green light to VanEck’s ETF on Wednesday, ETH prices are poised for a near-term rally. However, the prevailing wisdom leans toward rejection. Analysts say that even though the ETF faces a setback this week, final approval is almost certain.
The “Mister Crypto” analyst noted that the bearish rejection scenario is already priced in, a sentiment echoed by other traders and analysts. A surprise approval could surprise the market, however.
ETH Price Analysis
Recent market trends paint a mixed picture: Ethereum hit a yearly low against Bitcoin (0.044 BTC) on May 16, but has since rebounded about 6%. Despite this, the prevailing sentiment remains bearish, overshadowed by the impending ETF decision.
Currently, ETH prices are hovering slightly below $3,111, with a nod from the SEC that could catapult them towards the $3,500 resistance level and beyond, marking a significant upside.
Also discover: Will Spot Ethereum ETFs get the green light? A Deep Dive into the Approval Process
Are you invested in Ethereum? How will the ETF decision affect your strategy?