DMR News

Advancing Digital Conversations

Ethereum’s Price Soars 18% Amid Optimism for Spot Ether ETF Approvals

ByDayne Lee

May 21, 2024
Ethereum's Price Soars 18% Amid Optimism for Spot Ether ETF Approvals

Ethereum’s Price Soars 18% Amid Optimism for Spot Ether ETF Approvals

Ethereum (ETH) has witnessed a dramatic 18% rise in just 24 hours, fueled by renewed optimism that spot Ether exchange-traded funds (ETFs) might receive regulatory approval soon. This surge occurs in the midst of persistent market skepticism in previous months.

Regulatory Developments Spark Market Movement

Bloomberg ETF analysts Eric Balchunas and James Seyffart have pointed to recent “chatter” suggesting that the United States Securities and Exchange Commission (SEC) is expediting the review process for the 19b-4 filings related to these ETFs. This has led the analysts to increase their projected approval probabilities from a mere 25% to an optimistic 75%.

On the decentralized betting platform Polymarket, betting odds reflecting the likelihood of an approved spot Ether ETF have similarly risen, moving from 11% to 54%.

Following this news, Ether’s price has climbed to $3,625, marking a 16.1% increase since the news emerged about three hours ago. Within a 24-hour window, the price increase has reached 18%, as recorded by CoinGecko.

Upcoming SEC Decision

This flurry of activity precedes a critical decision from the SEC, due by May 23, on the application for a spot Ether ETF by VanEck. James Seyffart has clarified that while approval of 19b-4 filings is possible, they must be accompanied by approved S-1 registration statements for the ETFs to be launched. Seyffart indicated that even with 19b-4 approvals this week, the S-1 sign-offs could take additional weeks or months.

He optimistically noted that if their predictions are correct, and the approvals are granted this week, it would imply that S-1 approvals are likely inevitable, merely a question of timing.

The process of dual approvals for the 19b-4 and S-1 filings as a two-stage regulatory pathway was first suggested by Nate Geraci, president of The ETF Store, on May 19.

Market Reactions Beyond Ethereum

The broader cryptocurrency market has also experienced significant gains. Other major cryptocurrencies like Bitcoin (BTC), Solana (SOL), and Dogecoin (DOGE) have seen increases of 5.1%, 8.9%, and 9.2% respectively in the last 24 hours, as per CoinGecko data.

Particularly notable performances were observed in Ethereum-linked tokens such as Uniswap (UNI), Lido DAO (LDO), and Lido Staked Ether (STETH), all ranking within the top 100 by market cap and outperforming Ether in the last day.

The overall cryptocurrency market is on an upswing, with a 7.8% increase over the last day, pushing the total market capitalization beyond $2.7 trillion for the first time since April 11.

CryptocurrencyPrice Increase (%)Notes
Ethereum (ETH)18Anticipated ETF approvals
Bitcoin (BTC)5.1General market uplift
Solana (SOL)8.9Significant growth
Dogecoin (DOGE)9.2Strong performance
  • Regulatory Watch: The crypto community eyes the upcoming SEC decisions keenly.
  • Market Optimism: A potential approval of Ether ETFs has injected optimism into the market.
  • Investor Interest: Rapid price changes may attract more investors looking for quick gains.

This blend of regulatory anticipation and market reaction highlights the dynamic and responsive nature of the cryptocurrency markets to prospective policy changes.

Featured image credit:

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

Leave a Reply

Your email address will not be published. Required fields are marked *