Ethereum ($ETH) experienced a notable surge in value today, skyrocketing by 14% in just a matter of hours to reach $3,540. This surge was triggered by a series of tweets from prominent figures in the financial analysis community. Eric Balchunas, Bloomberg’s senior ETF analyst, announced that the estimated odds of the U.S. SEC approving a spot Ether ETF have increased from 25% to 75%. Balchunas shared this optimistic update in response to a tweet from Nate Geraci, the President of ETF Store.
Balchunas, together with fellow Bloomberg analyst James Seyffart, highlighted the potential shift in the SEC’s stance on the spot Ether ETF approval, which has become an increasingly political issue. This sudden change has caught many off guard, as the general expectation was that the spot Ether ETF applications would be denied. Seyffart clarified that their increased odds specifically apply to the SEC’s 19b-4 rule change approvals, which are due by May 23rd, while S-1 registration statement approvals may take longer, potentially weeks to months.
Geraci’s initial tweet outlined the dual approval process required from the SEC for spot Ethereum ETFs to be launched, which involves both 19b-4 exchange rule changes and S-1 registration statements. He noted that while the SEC could approve the 19b-4 changes, they might delay the S-1 approvals, causing a delay in overall approval.
The market reacted swiftly to Balchunas’s update, not only boosting the value of Ethereum but also propelling Bitcoin ($BTC) by 5%, surpassing the $70,000 mark for the first time in weeks. Additionally, $UNFI experienced a significant 32% increase, capitalizing on the market sentiment. The market is moving so rapidly that our writers had to update the price statistics multiple times during the writing process.
In recent news, QCP Capital has shared unconfirmed information that the SEC has requested crypto exchanges to promptly update their 19b-4 filings. This step could indicate that the approval of the Ethereum ETF is likely. However, as no one has predicted a 100% chance of approval, the decision could go either way.
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