Ethereum
Ethereum jumps 18% after shock ETF announcement
10:30 a.m. ▪ 4 min reading ▪ by Luc Jose A.
The recent announcement by the United States Securities and Exchange Commission (SEC) regarding the possible approval of an Ethereum spot ETF has triggered a real surge in Ether prices. This news, which could mark a watershed moment for Ethereum, has sparked massive investor interest and propelled Ethereum to new heights. But it’s understandable, given what’s at stake: a spot ETF would allow Ether to be traded on traditional markets, paving the way for broader adoption and a potentially significant revaluation.
Ethereum up 18% following ETF news
Like Bitcoin, Ethereum (ETH) saw a dramatic 14% increase in value, reaching $3,540 in just a few hours. This increase came after a series of tweets from influential figures in the financial analysis sector. Eric Balchunas, senior ETF analyst at Bloomberg, announced an increase in the odds that the SEC will approve a spot Ethereum ETF, raising that estimate from 25% to 75%. This optimistic update followed a tweet from Nate Geraci, President of ETF Store, highlighting the growing optimism regarding this approval.
According to Balchunas and his colleague James Seyffart, the SEC may reconsider its position on this increasingly politicized issue. They noted that the general expectation was more of a rejection of applications for spot Ethereum ETFs. Geraci explained that the SEC approval process for Ethereum spot ETFs has two stages: approval of exchange rule 19b-4 amendments and approval of S-1 registration statements. Although the SEC may approve changes to Rule 19b-4, it could delay approval of S-1s, potentially delaying the actual launch of the ETF.
The market reacted strongly to this announcement, leading to a rise not only in the price of Ethereum but also of Bitcoin (BTC), which increased by 6%, and other cryptocurrencies saw equally spectacular gains. Additionally, QCP Capital shared unconfirmed reports that the SEC may have required cryptocurrency exchanges to update their 19b-4 filings as soon as possible. This move could signal an upcoming approval of the Ethereum ETF, although this decision remains uncertain and far from 100% guaranteed.
If the spot ETF is approved…
The approval of an Ethereum spot ETF would have major implications for the cryptocurrency market. The move would allow investors to buy and sell shares of Ethereum on traditional exchanges, increasing the accessibility and legitimacy of the cryptocurrency. Such approval could boost demand and lead to a significant increase in the value of Ethereum.
The recent activities of Ethereum whales, who purchased over 110,000 ETH in 24 hours, show great confidence in the future of crypto. This massive accumulation suggests that institutional investors are anticipating a future price rise related to the ETF approval. Additionally, the increase in trading volume, which increased by 185%, indicates renewed interest and increased liquidity in the market.
Likewise, if the SEC were to approve the ETF, it could set a favorable precedent for other cryptocurrencies and encourage Wider Adoption of Crypto ETFs.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.