Ethereum Flips Mastercard by Market Cap as ETH ETF Odds Soar

The SEC’s officials are slated to announce their decision on VanEck’s Ethereum ETF products by May 23, 2024.

Robot jumping up in the air with ore of ethereum flying above the code.
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  • Ethereum whipped up 22% gains over 24 hours as ETH ETF odds tripled.
  • Bloomberg’s top financial analysts explain the SEC’s U-turn on ETH ETFs.
  • Standard Chartered unfolds brave ETH prediction as Ether flips Mastercard.

While the general crypto markets were on a rollercoaster ride for most of the year, the slim chances of an Ether Spot ETF approval have kept most big players on edge. Barricaded with silence, the Securities and Exchange Commission (SEC) switched its strict stance on Ethereum (ETH) regarding submitted ETH ETF applications.

Ether Flips Mastercard as ETFs Likely to Get the Nod

Bolstered by a market-wide renaissance, the largest Proof of Stake (PoS) blockchain, Ether, makes history by surpassing Mastercard by market capitalization. The traditional finance heavyweight has been around since 1966, providing debit and credit card services to people around the globe. 

After 58 years in operation, Mastercard has a $425 billion global market capitalization. Ethereum touched $454 billion hours after Bloomberg’s senior financial analysts Eric Balchunas and James Seyffart tripled their odds of an Ethereum Spot ETF approval.

Here’s Why Ether Spot ETF Approval Chances Tripled

As the deadline inches closer, Bloomberg’s top financial experts concluded that the SEC “could be doing a 180 on this,” despite the initial big player sentiment heavily leaning towards the SEC’s ETH ETF denial on May 23. As the scheduled deadline is just two days away, the buzz resounded among ETH ETF applicants, who were asked to update their 19b-4s.

Taken by surprise, the ETH ETF applicants have until this afternoon to submit their revised 19b-4s applications for the SEC. As the Ether ETF Cinderella story unfolds, the PoS chain’s native coin spiked by 18% to instantly claim new monthly heights and trade at $3,655.66 as of press time, according to CoinGecko.

Previously, several top industry players argued that Ethereum ETFs are unlikely to be accepted by the end of May 2024 due to the lack of engagement from SEC officials. In further detail, the representatives of both VanEck and Ark Invest shared this negative sentiment in late April 2024, while Bloomberg’s financial expert Eric Balchunas concluded the reluctant actions last month with an alarming message: “The SEC hasn’t engaged, no comments, no nothing. Radio silence = violence.” However, the tables have turned completely since then; thus, Eric Balchunas increased the probability of looming Ethereum ETF approval from 25% to 75%.

Industry Pros Set Ethereum’s End-of-Year Target

While Ethereum (ETH) has yet to tackle the three-month high set at $4,062.25 on March 12, 2024, today’s massive bull run added 22% to its price. As the crypto community celebrates Ether’s bullish wave, it’s important to note that Ether has decoupled from Bitcoin in price correlation, now standing at 0.54, according to IntoTheBlock.

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Though the industry’s big players somewhat expected Bitcoin’s surge in January 2024, Ethereum’s ETF-infused surge has surprised most experts. To illustrate, TRON blockchain’s founder Justin Sun posted a message last month expressing his opinion that Ethereum ETFs will not get approved in May 2024, as the industry “still needs to prepare for a long-term education with regulators.”

So, the situation has flipped upside down to the bullish side today, with crypto industry heavyweight Standard Chartered now forecasting a $8,000 Ethereum price by the end of this year. Moreover, the British multinational digital bank expects to see the first ETH Spot ETF approved this week. 

On the Flipside

  • The positive flip for Ethereum ETFs is also tied to the United States Senate shutting down the ambiguous “SAB 121” bulletin.
  • The anti-crypto bulletin was penned by the Securities and Exchange Commission (SEC) and nullified by the Senate on May 9, 2024.

Why This Matters

The rapid spike of Ethereum (ETH) in both market value and global market cap underscores the growing acceptance of digital currency in the general financial landscape.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.