The Securities and Exchange Commission (SEC) has reportedly asked exchanges planning to list spot Ethereum (ETH) exchange-traded funds (ETFs) in the US to update their filings. Joseph Edwards, head of research at Enigma Securities, mentioned this development to Reuters. Edwards noted that opposing the ETH ETF after the approval of the BTC ETF would seem inconsistent unless the SEC was ready to challenge Ethereum's securities status more broadly, a battle they might be inclined to avoid.
Anticipation of Spot Ethereum ETF Approval Drives Market Surge: SEC Decisions Expected This Week
Bloomberg ETF analysts Eric Balchunas and James Seyffart recently increased the probability of a spot Ethereum ETF approval from 25% to 75%, citing political motivations within the US regulator as a driving factor. This shift in sentiment has significantly influenced the market, leading to a 22.5% surge in Ethereum's price within the last 24 hours, also buoying the broader cryptocurrency market.
The SEC is expected to make decisions on spot Ethereum ETFs this week concerning filings from VanEck and ARK Investment Management. Analysts anticipate a blanket approval, meaning if one spot Ethereum ETF is approved, all pending spot Ethereum ETFs could be authorized for trading in the US.
Ethereum ETF Approval Could Trigger New Price Peaks, But Rejection Poses Significant Risks
Bitcoin saw a 96% increase in the two months leading up to the approval of its first spot ETF in the US and set new all-time highs in the subsequent months. Currently, Ethereum is about 23% below its all-time high of $4,878.26, according to Tradingview. If Ethereum follows a similar trajectory post-ETF approval, it could reach new price peaks by early Q3.
However, market expectations are high regarding the Ethereum ETF approval. A rejection from the SEC could have a significantly negative impact on the crypto market, potentially reversing recent gains and dampening investor sentiment.
The SEC's request for updated filings from US exchanges planning to list spot Ethereum ETFs signifies a potentially pivotal moment for Ethereum and the broader cryptocurrency market. The increased likelihood of approval has already positively impacted Ethereum's price and market sentiment. As the SEC's decisions on VanEck and ARK Investment Management's filings approach, the market remains optimistic yet cautious, aware of the substantial implications of either approval or rejection.