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Ethereum rises as analysts predict greater likelihood of ETF approval

Approval of the ETF could facilitate access to Ethereum investments for a wide range of institutional and retail investors, which could further fuel growth.

Date: 2024-05-22 Author: Łukasz Michałek
Ethereum rises as analysts predict greater likelihood of ETF approval

The price of Ether surged more than 20% to around $3792, fueled by rumors that U.S. regulators may finally approve Ethereum ETFs. The surge in price surprised traders, as most had predicted that the SEC would delay or reject the first ETF until Thursday.

Standard Chartered is deepening the upside sentiment. The bank said it has 80-90% confidence that Ether ETFs will be launched in the US this week.

“Once approved, we estimate that the ETFs will result in an inflow of 2.39-9.15 million Ether in the first 12 months after approval,” said Geoff Kendrick, director of currency and digital asset research. “In U.S. dollar terms, that translates to about $15-45 billion.”

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Decision day for Ethereum ETFs: will the SEC give the green light?

Adding fuel to the fire, Bloomberg Intelligence analyst Eric Balchunas significantly raised his approval forecast, now at 75%, up from the 25% he previously projected.

In a post on X, the analyst said “I’m hearing that the SEC may change its mind 180 degrees on this issue (an increasingly political issue), so now everyone is hesitant (like us, everyone assumed they would be rejected).”

Meanwhile, the Grayscale Ethereum ETF is up 23% at $32.76 per share. And the momentum is not limited to Ethereum. Bitcoin is up 5% and approaching the $70,000 level.

VanEck, ARK’s fee for Ether ETFs

Now the SEC is in no hurry to decide on the first applications for Ether ETFs. VanEck and ARK Investment Management are on the front lines, with SEC decision dates set for May 23 and May 24, respectively. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum.

This week, Fidelity amended its ETF application with the SEC. The move follows rumors that the SEC has changed its policy on these funds, possibly due to political influence. According to reports, the commission has asked issuers to update their applications (19b-4 filings) before taking further action.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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