Markets
Crypto Market Recovers as SEC Reportedly Moves Forward with Ether ETF Process
May 20, 2024 6:12 p.m. | 2 minutes of reading
Cryptocurrency prices jumped Monday evening as new details emerged about the Securities and Exchange Commission moving forward with the process for the first U.S. transaction. exchange traded funds holding Ethereum (CRYPTO: ETH).
What happened: On Monday, the SEC’s Trading and Markets division asked asset managers to revise their 19b-4 filings, which are typically used to seek SEC permission to change their rules for listing a new type ETF, according to at the Wall Street Journal.
The move was seen as a positive development by many investors, leading to a surge in cryptocurrency prices. The updated documents should be available in the near future, the WSJ reports.
Despite the lack of communication between SEC staff and potential ETF issuers, the SEC’s decision to require asset managers to amend their filings has raised hopes of an Ether ETF approval this week, according to the Journal. This led to an 18% increase in the price of Ether and an increase of more than 5% in the price of Ether. Bitcoin (CRYPTO: BTC).
Why is this important: The potential approval of an Ether ETF is an important development for the cryptocurrency market. Ether is the second largest cryptocurrency after Bitcoin, and an ETF would make it easier for investors to gain exposure to this digital asset.
And after: The updated 19b-4 filings are expected to go live in the coming days, the WSJ reports. Some analysts increased their approval estimates for an ether ETF to 75% following this development.
See also: Coinbase Says Ethereum ETF Approval Is More Likely Than You Think: Here’s Why
Why is this important: Recent SEC actions have raised hopes for approval of Ether ETFs, with analysts Eric Balchunas and James Seyffart increasing the chances from 25% to 75% on Monday. However, they later clarified that the chances were tied to 19b-4 approvals, not final ETF authorization.
The SEC is expected to make a decision on the VanEck Ether spot ETF on Thursday. The SEC has been investigating whether Ether, the main native asset of the Ethereum blockchain, is a security. If it is a security, this could be grounds for the regulator to reject Ether spot ETF applications.
And after: The potential approval of Ether ETFs has already had a significant impact on the market. Following the news, Bitcoin surpassed $70,000 and Ethereum price rose 14%.
Co-founder of Ethereum, Vitalik Buterinrecently praised the platform’s critic-friendly culturea sentiment that sparked mixed reactions on social media.
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock.
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