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Ether jumps most in 18 months on ETF approval speculation
(Bloomberg) — Ether rose the most in 18 months, leading a rally in digital assets amid growing speculation that opposition among regulators to approving one or more exchange-traded funds is easing. they invest directly in the second largest cryptocurrency.
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Ether rose 14% to around $3,490 as of 4:49 pm in New York. Bitcoin also extended gains, rising 5% to $69,442.
The Ethereum blockchain’s native token extended gains after Bloomberg Intelligence ETF analyst Eric Balchunas said he and his colleague James Seyffart increased the estimated probability of a spot-Ether ETF being approved to 75% from 25%.
The Securities and Exchange Commission on Monday asked an issuer of a potential spot-Ether ETF to update its 19b-4 filing, according to a person familiar with the matter who requested anonymity discussing confidential information. A 19b-4 is a form used to notify the SEC of a rule change that would allow the fund to trade on an exchange. ETF issuers must obtain both documentation and an SEC-approved S-1 registration statement before products can officially launch.
Traders and analysts on social media “are now speculating that the SEC may be more amenable to a potential approval, and traders are now rushing to take positions as many have completely written off even the remote possibility of an approval,” he said Chris Newhouse, decentralized finance analyst at Cumberland Labs.
“Massive spikes in volume and demand for both spot and leveraged positions are evident in the markets, and ETH’s outperformance versus BTC points to the potential catalyst of the ETH ETF as the primary driver,” he added.
Read: Fund Managers Brace for SEC Rejection of Ether-ETF Applications
After months of silence, the U.S. Securities and Exchange Commission is set to announce a decision on at least one application for an ETF that invests directly in Ether by May 23. Some fund companies expect a rejection because their private dialogue with the SEC has not been completed. was as solid as it had been before the approval of spot Bitcoin ETFs in January, Bloomberg reported Friday, citing two people familiar with the matter, who asked not to be identified discussing private conversations.
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Despite Monday’s rally, not all traders were convinced the SEC was preparing for an Ether ETF.
“FalconX’s derivatives desk has seen most of our counterparties fade the move with the expectation that the SEC will move slower than markets expect,” said Ravi Doshi, head of markets at FalconX.
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