Ethereum has recorded its largest price surge in 18 months, leading a broader digital asset rally. This uptrend coincides with growing speculation that regulatory resistance toward approving Ethereum-based exchange-traded funds (ETFs) may be easing.
Market Performance Highlights
- Ethereum (ETH): +14% to ~$3,490
- Bitcoin (BTC): +5% to $69,442
The rally accelerated after Bloomberg ETF analysts Eric Balchunas and James Seyffart revised their estimated approval odds for a spot Ethereum ETF from 25% to 75%, citing potential regulatory shifts.
Key Developments Driving Optimism
- SEC Requests Updated Filings: The U.S. Securities and Exchange Commission asked at least one prospective ETF issuer to amend its 19b-4 filing—a procedural step suggesting progress toward approval.
- Deadline Approaching: The SEC must decide on pending applications by May 23. While some expect rejections, the recent filing updates have fueled speculation of a policy change.
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Why Traders Are Betting on Approval
Chris Newhouse, DeFi analyst at Cumberland Labs, notes:
"Traders who previously dismissed approval chances are now rushing to position themselves. The surge in ETH's leverage demand and spot volume—outpacing Bitcoin—signals strong ETF-driven momentum."
However, skepticism persists:
- FalconX derivatives traders anticipate slower SEC action than market pricing reflects.
- SEC's muted engagement with issuers contrasts with the proactive dialogue seen before Bitcoin ETF approvals.
Core Keywords Identified
- Ethereum ETF
- SEC approval
- Cryptocurrency rally
- 19b-4 filing
- ETH price surge
FAQs
Q: What’s the significance of the 19b-4 filing update?
A: It signals SEC engagement—a potential precursor to approval, though final S-1 registration clearance remains required.
Q: How does ETH’s rally compare to Bitcoin’s ETF approval run-up?
A: ETH’s outperformance suggests traders view its ETF as a unique catalyst, distinct from BTC’s 2024 approvals.
Q: What happens if the SEC rejects all applications?
A: Expect short-term volatility, but ETH’s utility in DeFi and layer-2 networks may cushion long-term impacts.
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