Ethereum Leads Crypto Market Surge as ETH ETF Reverses Course

The once-pessimistic outlook for the SEC’s approval of an Ethereum ETF has suddenly shifted in a positive direction.

A group of people pointing at an Ethereum Logo shining on the sky.
Created by Gabor Kovacs from DailyCoin
  • Odds of Ether ETF approval have recently skyrocketed.
  • Ethereum and other assets are experiencing upticks in the wake of the news.
  • A sudden wave of action from the Securities and Exchange Commission ignited the change.

The months-long wait for Ethereum ETFs has gone from exciting to sour, largely due to the Securities and Exchange Commission’s (SEC) lukewarm and unimpressive approach to proposals. However, in a sudden twist, the commission’s inherently unpredictable nature has once again reared its head, fueling optimism for a potential approval.

As expected, the reignited wave of excitement has sparked a rally.

Ethereum Surge Fuels Market Uptick

In the mid-hours of Monday, May 20, 2024, the crypto market was sent into a frenzy by an SEC filing update on Ether ETF proposals, marked by upticks across various assets.ย 

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The surge, led by the star of the moment itself with an approximate 20% rise, commenced around 4:00 PM UTC, skyrocketing Ethereum (ETH) from a trading value of $3,084 to its month-peak of $3,700. Trading at $3,660 at press time, ETH is still enjoying its upward momentum, only dropping 2.4% so far. Ethereumโ€™s market cap has also surged 17.8%, presently valued at $440.28 billion.

Following suit is crypto king Bitcoin (BTC), which also broke past its long-held 60,000 mark, surging from $66,800 to $71,700 within the same timeframe. This marked a total 7.3% increase in BTCโ€™s price, bringing the token to a new peak following weeks of volatility.

Others impacted included Binance Coin (BNB), Solana (SOL), and Ripple (XRP). BNB rose approximately 10.4% from $570 to $629, SOL a total of 6.82% from $176 to $188, and XRP 5.78%. from $0.5125 to $0.5421, 

But what SEC action on Ethereum ETFs ignited this frenzy?

Renewed SEC Filings Boosts Ether ETF Prospects

With the prevailing sentiment on the SECโ€™s potential verdict on the first ETH ETF proposal largely negative, even slight speculation of possible approval has investors and issuers on edge.

Following initial predictions that approval for the proposed investment vehicle was “just not happening,” Bloomberg analysts James Seyffart and Eric Balchunas re-emerged with a revised outlook on Monday, increasing the odds of spot Ether ETF approval to 75% from 25%.

The renewed optimism is based on speculation that the SEC has demanded exchanges to file updated 19b-4s. However, the commission has not officially confirmed the process, and only the rollout of official filings in the coming days will solidify the speculation.

On the Flipside

  • Despite the ongoing positive wave, the SEC’s approval of an ETH ETF is not guaranteed.
  • The presence of leading asset managers such as BlackRock in the race for approval is fueling optimism for approval.
  • Memecoins such as Pepe(PEPE), Dogecoin(DOGE), and Shiba Inu(SHIB) also recorded gains of 18%, 8%, and 5% in the last 24 hours.

Why This Matters

The SEC’s historical reluctance to approve Ethereum ETFs and the ongoing debate over Ethereum’s status has cast a shadow on the outlook for potential approval. However, the sudden surge in activity could signal the beginning of a potential approval for the proposed investment vehicle.

Read more on the previous expectations for the SECโ€™s decision on ETH ETF: 
Analysts Convinced Ethereum ETF Verdict Is Virtually Decided 

Find out more about the recent leadership shakeup at Grayscale:
Grayscale CEO Sonnenshein Steps Down as Old Guard Rotates

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
Grace Abidemi

Grace is a crypto reporter for DailyCoin, covering a diverse range of market updates. Grace has minor holdings in Bitcoin & Solana, and moderate holdings in Rune & XRP.

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