Ethereum rallies amid potential ETF approval hearsay

Analysts predict major Ethereum surge if SEC grants approval to spot ETF

According to reports, Ethereum is making a major move upwards on price charts as excitement grows over the potential approval of spot Ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Analysts at different research firms are predicting that the value of Ether could experience an insane surge of up to $6,600 if this happens.

Analysts are optimistic that the SEC will give the approval since the Commission required exchanges to speed up their 19b-4 filings which are necessary for the ETFs to be approved. This has been taken as a positive sign by traders as well because it shows that maybe the commission is now readying itself towards that direction hence building more trust among them. Over the last 24 hours, Ethereum has already jumped by 7.97% reaching around $3,700 per unit as per data from Binance.

Gautam Chhugani and Mahika Sapra who work as analysts at Bernstein drew a parallel between what could happen if Ethereum’s ETFs get approved and when Bitcoin’s ETFs were approved before by the SEC. They said that following its ETF approval earlier on this year Bitcoin’s value went up by 75%. This means if Ether follows suit it might hit prices never seen before.

The time limit for deciding on VanEck's Ethereum ETF application by the SEC is rapidly approaching and the decision is anticipated to be made by May 23. Market speculation and trading activities have become much more robust given this deadline.

On the decentralized prediction market platform Polymarket, the chance of an Ether ETF being approved on or before May 31 has shot up from 10% to 55%. A different wager that forecasts approval before June 30 now has it at 68%.

In accordance with their recent actions at the SEC, analysts Eric Balchunas and James Seyffart from Bloomberg Intelligence have raised significantly the chances they assign for approval from 25% to 75%. They point out ongoing discussions with exchanges as indicative of regulator sentiment change.

Ethereum ETFs’ potential approval is likely to significantly affect the digital currency market, just like Bitcoin ETFs did. The news has already caused the CoinDesk 20 – which monitors the largest cryptocurrencies – to rise by nearly 8%. This hopefulness is strengthened by speculations that the SEC may implement a two-stage endorsement process where it first approves 19b-4 filings before registration statements necessary for the commencement of ETF trading are approved.

Nevertheless, a number of financial analysts warn that even if these signs are encouraging, there still remains a likelihood for the final registration statements to be turned down.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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