Bloomberg analysts James Seyffart and Eric Balchunas have dramatically increased the odds of a spot Ethereum ETF approval to 75%. This shift suggests a last-minute reversal by the SEC, potentially influenced by political pressure. Prior industry consensus had been that these ETFs would be denied due to a lack of engagement between ETF issuers and the SEC. Bloomberg analysts had previously pegged the probability of approval at just 10%.
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Ethereum ETF Approval Odds Rise to 75%
Former Grayscale CEO Michael Sonnenshein expressed optimism ahead of the Ethereum ETF approval deadline. Following the latest developments, Seyffart and Balchunas now rate the approval odds at 75%, pending potential filing updates. According to Fox Business reporter Eleanor Terrett, the situation is evolving “in real-time.”
Jake Chervinsky, a well-known cryptocurrency analyst, commented that the approval of spot Ethereum ETFs would be “shocking” to everyone he knows in Washington, D.C. Such a move by the SEC could indicate a significant shift in U.S. crypto policy following the bipartisan SAB 121 vote.
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The SEC is expected to announce its final decision regarding the VanEck ETF proposal on May 23. In response to these developments, the price of Ethereum has surged over 8% in the past hour, reaching $3,400. Bitcoin’s price is also nearing $70,000.
Ethereum Market Surges Ahead of SEC Decision
Ethereum open interest has risen by $1 billion in just one hour, with traders aggressively opening long positions. GlassGlass data shows that more than $86 million worth of short positions have been liquidated over the past hour.
This increase in market activity underscores the significant impact that regulatory decisions can have on cryptocurrency markets. The potential approval of spot Ethereum ETFs represents a pivotal moment for the industry, reflecting the growing acceptance and integration of digital assets within the traditional financial system.
As the SEC’s decision looms, market participants are closely watching for any further updates that could influence the outcome. The approval of spot Ethereum ETFs could mark a new era for cryptocurrency investment, potentially leading to increased institutional participation and market stability.
The SEC’s anticipated decision on the VanEck Ethereum ETF proposal is a critical development for the cryptocurrency market. With analysts now predicting a 75% chance of approval, the coming days will be crucial for investors and industry stakeholders.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.