Home Ethereum price surges 21% as analysts think SEC considers ETF

Ethereum price surges 21% as analysts think SEC considers ETF


  • SEC requests accelerated filings for Ethereum ETFs, hinting at possible approval by Thursday.
  • Analysts raise approval odds from 25% to 75% following SEC's move.
  • Approval could signal significant U.S. crypto policy change, impacting Ethereum's price and regulatory landscape.

The U.S. Securities and Exchange Commission (SEC) has requested that exchanges update their filings for spot Ethereum (ETH) exchange-traded funds (ETFs) by submitting new Form 19b-4 on an “accelerated basis.”

This move, according to Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart, suggests that the SEC may be leaning towards approving the Ethereum ETF applications by the upcoming Thursday deadline. If approved, this would mark the issuance of the second spot digital asset ETF in the United States.

Prior to the updated Form 19b-4 request, Balchunas and Seyffart had estimated the odds of Ethereum ETF approval at 25%. However, following the SEC’s request, they have significantly increased their prediction to 75%. Despite the optimism among some in the crypto community, Balchunas believes that the approval expectations are merely “wishcasting.”

The next steps

For the ETFs to launch, the SEC must approve both the 19b-4s for exchange rule changes and the S-1s for registration statements, according to Nate Geraci, president of The ETF Store. The potential approval of spot Ethereum ETFs could signal a significant shift in U.S. crypto policy.

Variant Fund Chief Legal Officer Jake Chervinsky stated that an approval would be a “true shock” to those closely involved in the process in Washington, D.C. He added that the approval could indicate a major change in U.S. crypto policy following the SAB 121 vote, which may be even more significant than the ETF itself.

Seyffart agreed with Chervinsky’s assessment, noting that during a recent Blockchain Summit in D.C., nearly everyone he spoke to believed the ETFs would be denied. If the ETFs are approved, it could portray the Biden administration as more crypto-friendly. The approval in the United States would also follow the launch of such a product in Hong Kong in early May.

Ethereum’s price increased by over 21% to its current price of nearly $3,800 on the back of the news.

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Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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