Dig into the latest ETH price analysis and explore Ethereum prices exploding as the odds of the United States SEC proceeding with their spot ETH ETF approval increase.
On May 20, Ethereum prices rocketed above $3,300 in one single push. CoinMarketCap data shows that the coin is up 18% in the past day and a whopping 25% in the previous week alone.
(ETH)
Technically, Ethereum bulls are in control, and this will continue unless there is an unexpected plunge reversing yesterday’s gains.
All Eyes On The United States SEC And Spot Ethereum ETF Approval Progress
The eruption on Monday comes as rumors swirled about a dramatic shift in stance by the United States Securities and Exchange Commission (SEC) regarding spot Ethereum ETFs.
With the United States SEC reportedly changing its hardliner position, Bloomberg analysts Eric Balchunas and James Seyffart increased the odds of approval of 19b-4 filings from 25% to 75%.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Eyes are on the regulator as Thursday’s deadline for their decision on spot Ethereum ETF applications approaches. Then, the United States SEC will have to decide on its position regarding an application from VanEck.
While a two-part approval process involving separate 19b-4 and S-1 filings might delay the launch, Ethereum would greatly benefit from the initial green light of the 19b-4 filing.
SEC decision deadline this week on spot eth ETFs…
SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements) for ETFs to launch.
Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here).— Nate Geraci (@NateGeraci) May 19, 2024
The launch will be specifically delayed since S-1 registration statements could take weeks or even months before being signed.
Even so, rumors exist that the regulator has asked applicants to accelerate their 19b-4 filings. This is a step in the right direction as far as spot Ethereum ETF approval is concerned. Earlier, the Commission wasn’t very active in engaging with spot Ethereum ETF applicants, looking at the steps before the greenlight of spot Bitcoin ETFs.
The prospect of the United States SEC approving the complex Ethereum derivative has altered market sentiment.
Previously, most analysts anticipated rejections for all applications in light of the regulator’s position on ETH as a security. Gary Gensler was reported to maintain that ETH was an unregistered security for at least a year.
If anything, the eventual approval of a spot Ethereum ETF would make it easier for institutions to have ETH exposure. For now, the welcomed engagement from the United States SEC is positive but likely triggered by politics; either way, markets are enjoying resurgent Ethereum prices.
DISCOVER: How to Buy Ethereum – Beginners Guide May 2024
Pro-Crypto Regulations Taking Shape In The United States
The United States Senate recently voted to overturn Staff Accounting Bulletin (SAB) 121. Through this, the SEC had the power to bar public companies, including banks, from being custodians of cryptocurrencies.
Critics of SAB 121 said it was punitive because it limited banks from offering custodial services, pushing consumers to less regulated entities.
Amid this, a leaked email from Democratic Party leaders said that their members won’t be forced to vote against two pro-crypto bills – the FIT21 Act and the CBDC Anti-Surveillance State Act.
If FIT21 is passed, it will make it easier for regulators to classify whether a crypto asset is a security or a commodity. Of importance is that the Commodity Futures Trading Commission (CFTC) will have the “authority to register and regulate digital commodities.”
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital
