Will SEC Approve Ethereum ETFs? Ether (ETH) Price Explodes Higher Amid Rumors of SEC U-Turn
The Ether (ETH) price exploded higher on Monday as traders bet that the SEC will approve Ethereum ETFs as soon as this week following the emergence of rumors of a major SEC u-turn.
ETH was last trading with gains of more than 10% in the $3,400 region.
Bloomberg ETF analyst Eric Balchunas tweeted on X that he and fellow analyst James Seyffart had increased their odds of approval to 75% after hearing chatter that the SEC could be doing a “180”.
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
With deadlines to approve, deny or extend some ETF applications coming as soon as Thursday, approval could come this week.
Prior to the latest rumors of an SEC u-turn, most had expected that Ethereum ETF rejections were coming.
Indeed, the SEC has reportedly been looking to classify Ether as a security in recent months.
Bloomberg analysts Balchunas and Seyffart have a great track record of predicting crypto ETF approvals.
They vocally championed the idea that spot Bitcoin ETF approvals were coming in 2023, despite market pessimism at the time.
Its no wonder then that a major repricing is currently underway in the Ether market. Investors are aggressive upping their bets that, yes, the SEC will approve spot Ethereum ETFs.
And that is pushing the price substantially higher as a result. Why?
Because the approval of Ethereum ETFs will give institutional investors much easier access to gain exposure to Ether.
Just as happened with Bitcoin, this is likely to
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