Ethereum (ETH), second in market value, has risen 17% since news broke that the U.S. Securities and Exchange Commission had approved its Exchange Traded Fund.
Ethereum saw a major surge on the 20th of May. The current price is $3,658. There are $37 billion in 24-hour trading volume. Eric Balchunas a senior Bloomberg analyst raised the chances of Ethereum ETF approval from 25% up to 75%.
Analysts have noted the U.S. SEC’s accelerated pace in approving the ETF could be due to the pressure being placed on the agency, since their prior stand indicated little involvement with ETF applications.
Balchunas stated also that the SEC appears to be urging exchanges like the NYSE or Nasdaq, revise the filings they make. However, there is no official confirmation by the regulator.
Nate Geraci is the co-founder and president of ETF Store. noted The final decision regarding the requirement to register individual funds (S-1), is still in the midst of being made.
Geraci says that the SEC can accept exchange rule amendments (19b-4s), independently of the registration of the fund (S-1), and this could be delayed by several months. VanEck’s Ethereum spot ETF The deadline for submitting a request is the 23rd of May.
This delay will give the regulator time to review and approve the documents. It is important that the regulator considers the risks and complexities of systems using Proof-of-Stake cryptocurrency.
SEC is already a member of the SEC been looking into whether etherThe Ethereum Blockchain’s main native asset is now being investigated as a securities. This comes after the switch from the proof-of work (PoW), to the proof-of stake (PoS), consensus algorithm.
The SEC may refuse spot ETFs if it determines that Ether is a financial instrument.
Analysts at QCP Capital also believe that the “resounding lack of interest” The approval of an Ethereum ETF spot, coupled with the current market conditions, has led to a surge in demand. might provoke a short squeezeWhat could be a good example of this? “easily” Return ETH to the recent highs, March 12th when it traded at $4.066, according to data from CoinMarketCap.
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Source: crypto.news
