Key Points
- ETH’s price rose by about 19% in a day, reaching prices over $3,600.
- The price surge comes after an injection of fresh optimism regarding a potential approval by the SEC of Ethereum ETFs this week.
Ethereum (ETH) saw a significant price surge amidst the reconsidered probability that the US SEC could greenlight the Ethereum ETF products this week.
At the moment of writing this article, ETH is up by about 19% today, after seeing an impressive surge of 20% on Monday, as noted by CNBC.
ETH is now trading above $3,660, according to our data.
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Investors reconsider the probability of SEC’s approval of Ethereum ETFs
CNBC notes that investors are currently reconsidering the chances of Ethereum seeing a green light for ETF applications.
The SEC has reportedly requested document updates from potential ETF issuers and exchanges.
CNBC quoted Bartosz Lipiński, CEO at Cube Exchange who said that ETH spiked upwards shortly after rumors started circulating that the SEC might approve the spot ETH ETF this week after all.
He was also quoted adding that in a similar way to Bitcoin ETFs earlier this year, this feels to him like a potential “buy the rumor, sell the news” type of situation.
However, yesterday, Bloomberg’s Eric Balchunas noted via his X account, that together with James Seyffart, they are increasing their odds of approval for Ethereum ETFs from 25% to 75%, after they heard rumors yesterday afternoon that the SEC could eventually approve the crypto products due to political reasons.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Seyffart shared a list via his X account featuring all entrants in the spot Ethereum ETF race.
Final decisions on applications by VanEck and Ark Invest are due this Thursday, on May 23, and Friday, May 24 respectively.
BlackRock, Fidelity, Invesco, Grayscale, and Bitwise Asset Management also have applications for Ethereum ETFs awaiting decisions this year.
The renewed optimism in a potential SEC approval of the Ethereum ETFs comes following previous expectations that the funds would likely not be approved.
