Ether Surges amid Optimism over US spot ETH ETF Approval
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Ether’s Price RisesÂ
In a remarkable development, Ether, the leading altcoin, has reached its largest two-day gain in nearly two years. This surge is driven by optimism surrounding the potential approval of the spot ETH ETFs by the US Securities and Exchange Commission (SEC).
Ether trades at $3,750, its highest level in two months, following a 19.2% surge in the last 24 hours. The anticipation surrounding the SEC’s decision stems from unconfirmed reports suggesting that the regulatory body may approve the spot ether ETFs, contrary to previous expectations of rejection.
This optimism follows the SEC’s approval of several spot bitcoin ETFs earlier this year, which attracted significant capital inflows. Ben Laidler, global markets strategist at eToro, remarked that Ethereum has assumed a leading position in the recent cryptocurrency rally, preceding the SEC’s imminent deadline to decide on the spot ETH ETF proposals.
He emphasized that while outright approval may be a long shot, any indication of a pathway to eventual acceptance will positively affect the crypto’s price. Several prominent financial institutions, including ARK Investment Management, VanEck, and seven other issuers, have filed applications with the SEC to list spot ether ETFs. The SEC will reveal its decisions on VanEck’s and ARK’s filings by May 23 and May 24, respectively, making them the first in line for approval.
Silence on Individual Ether ETF Filling Reports
Meanwhile, Joseph Edwards, head of research at Enigma Securities, cited reports indicating that the SEC had requested exchanges to update their filings to accommodate the listing of spot ether ETFs. Despite the heightened anticipation, an SEC spokesperson declined to comment on individual filings, maintaining the regulator’s stance of confidentiality regarding ongoing deliberations.
However, Edwards hinted that opposing the approval of spot ether ETFs following the endorsement of spot Bitcoin ETFs could present a challenging case for the regulatory body. The surge in cryptocurrencies was also triggered by data indicating a slowdown in US inflation.
The favorable macroeconomic environment has bolstered investor sentiment, contributing to the bullish momentum in the crypto market. In the last 24 hours, on-chain data shows that spot Bitcoin ETFs have attracted over $241 million in total net inflows.
BlackRock’s IBIT recorded $66 million in inflows, while Fidelity’s FBTC received $64 million. These inflows are part of the reason the global cryptocurrency market cap surged by 7.9% in the past day, reaching around $2.61 trillion.
US SEC Requests Adjustments to Ether ETF FilingsÂ
Meanwhile, sources familiar with the matter revealed that the SEC has asked CBOE, Nasdaq, and NYSE to refine their filings. The move comes amid heightened anticipation within the cryptocurrency industry as market participants await the SEC’s decision on the proposed ETFs.
The ARK Investments/21Shares and VanEck applications are under scrutiny by the regulatory body. The SEC’s involvement in refining the ETF filings marks a significant development, especially considering the skepticism surrounding the regulator’s stance on cryptocurrency-related products.
The SEC’s potential approval of spot ETH ETFs would represent a departure from previous expectations, led by Gary Gensler, who has expressed cautious views on digital assets.
No Definitive Timeline For A Final Decision
Despite the positive signals, industry insiders emphasize that the approval process remains ongoing. While the SEC’s request for adjustments typically precedes approval, there is no definitive timeline for a final decision.
The initiative to launch spot ETH ETFs gained momentum following the SEC’s approval of ETFs linked to ether futures last October. The SEC’s stance on cryptocurrency-related investment products has been notably cautious.
For instance, spot Bitcoin ETFs were rejected for over a decade due to concerns regarding market manipulation. However, the landscape shifted after Grayscale Investments successfully challenged the SEC’s decision, leading to the approval of these ETFs earlier this year.
The introduction of spot BTC ETFs sparked significant interest from institutional and retail investors, with two newly approved funds attracting over $1 billion in assets within the first week of trading.
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