The price of Ether has surged over 20% to around $3,792 fueled by rumors that US regulators might approve Spot Ethereum ETFs. Traders were surprised as most expected the SEC to delay or reject the first Ether ETF. Standard Chartered is also adding to the bullish sentiment, stating they are 80%-90% confident that Ether spot ETFs will launch in the US this week. The bank estimates that spot ETFs could bring in inflows of 2.39-9.15 million Ether in the first 12 months after approval, equating to roughly $15 billion to $45 billion in US dollar terms. Bloomberg Intelligence analyst Eric Balchunas has also upped his prediction for approval to 75%, from 25%, citing a potential shift in the SEC’s position on this issue.
Market analysts and investors had previously anticipated that the SEC would deny the applications for Ether ETFs. However, the US markets regulator is now set to announce its decision on some of these applications. Grayscale’s Ethereum ETF has surged by 23%, reaching $32.76 per share, continuing the positive momentum in the cryptocurrency market. Bitcoin is also up 5% and nearing the $70,000 mark. This surge in interest and investment in Ethereum ETFs and cryptocurrencies in general has surprised many, as analysts had been generally pessimistic about the approval of an Ethereum ETF following the long process for approval of spot Bitcoin ETFs.
VanEck and ARK Investment Management are leading the charge for spot Ether ETFs, with deadlines for the SEC decision set for later this month. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum. Fidelity has also amended its application for a spot Ether ETF with the SEC, following rumors of a policy shift at the SEC possibly influenced by political factors. Issuers have reportedly been asked to update their applications before moving forward, signaling a potential change in the SEC’s approach to approving these funds.
The potential approval of Spot Ethereum ETFs has generated significant optimism in the market, leading to a surge in the price of Ether and positive momentum in the entire cryptocurrency market. Standard Chartered’s confidence in the launch of Ether spot ETFs and Bloomberg Intelligence analyst Eric Balchunas’ revised prediction for approval have contributed to this bullish sentiment. The SEC’s upcoming decision on the applications from VanEck, ARK, and other issuers will be closely watched by investors and traders, as it could open up new investment opportunities in the cryptocurrency space. The approval of Ether ETFs could potentially bring in billions of dollars in inflows and further establish cryptocurrencies as a mainstream investment option.
