The price of Ether has surged over 20% to around $3,792 amidst rumors of imminent approval of Spot Ethereum ETFs by US regulators. This unexpected price surge has caught many traders off guard, as most had anticipated a delay or rejection of the first ether ETF by the SEC. Standard Chartered has added to the bullish sentiment by expressing an 80%-90% confidence in the launch of Ether spot ETFs in the US this week. Geoff Kendrick, Head of FX Research and Digital Assets Research, predicts that spot ETFs could drive inflows of 2.39-9.15 million ether in the first 12 months after approval, equivalent to approximately $15 billion to $45 billion in US dollars.
Analyst Eric Balchunas from Bloomberg Intelligence has significantly increased his prediction for approval of the Ether ETFs to 75%, up from 25%. The SEC, which previously was expected to deny the ETF applications, is now rumored to potentially do a complete turnaround on this issue. Grayscale’s Ethereum ETF has also seen a significant surge of 23%, reaching $32.76 per share. Additionally, the entire cryptocurrency market is experiencing a rally, with Bitcoin up 5% and nearing the $70,000 mark.
After a decade-long wait for spot Bitcoin ETFs to gain approval, analysts were generally pessimistic about the potential for an Ethereum ETF to follow suit quickly. However, recent developments have surprised many as the sentiment regarding Ether ETF approval has shifted. VanEck and ARK Investment Management are leading the charge for Spot Ether ETFs, with deadlines for the SEC decision set for May 23 and May 24 respectively. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum.
This week, Fidelity has made amendments to its application for a spot Ether ETF with the SEC in light of the rumors surrounding a policy shift by the SEC on these funds, possibly influenced by political factors. The SEC has reportedly asked issuers to update their applications before moving forward. The potential approval of Spot Ethereum ETFs in the US could have a significant impact on the cryptocurrency market and could drive further price increases for not only Ether but also other cryptocurrencies like Bitcoin. Traders and investors are eagerly awaiting the SEC’s decision on the Ether ETF applications, with hopes of increased institutional interest and inflows.
In summary, the unexpected surge in Ether’s price, fueled by rumors of imminent approval of Spot Ethereum ETFs by US regulators, has taken traders by surprise. Analysts and investors who were previously pessimistic about the approval of an Ether ETF are now reconsidering their predictions amidst changing sentiments at the SEC. The potential approval of Spot Ether ETFs could lead to significant inflows and further price increases not only for Ether but also for other cryptocurrencies in the market. With major players like VanEck and ARK Investment Management leading the charge, the cryptocurrency market is on the cusp of a potential breakthrough with the launch of Ether ETFs in the US. Investors are closely watching the SEC’s decision, which could have a lasting impact on the crypto market.
