Ethereum Soars 20% Amid Rising Approval Prospects for Spot ETFs

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The digital currency landscape recently experienced a surge, with the value of Ethereum, the second-largest crypto token on the market, leaping by nearly 20% within 24 hours. A constellation of factors has contributed to this meteoric rise, including, notably, the looming potential approval of Spot Ethereum ETFs.

In a surprising twist, the Securities and Exchange Commission (SEC) is now appearing favorably inclined towards greenlighting these Spot Ethereum ETF applications. Quite the contrast to earlier sentiments where it seemed quite definitive that the Commission would lean towards denying the request.

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This shift in the wind was brought to light by Eric Balchunas, a Bloomberg analyst. Perchance during a leisurely scroll through posts on X (formerly Twitter), Balchunas discovered a goldmine. He and his Bloomberg colleague, James Seyffurt, read between the lines, and discerned a 75% likelihood of approval for the Spot Ethereum ETFs. This was a significant leap from their previous assessment of 25% approval odds.

“Things are taking a turn for the better on Spot #ethereum ETF approvals this week. Upping our odds to 75%,” Seyffurt posted, lending his voice to the rising chorus of positive speculation.

Adding layers to this burgeoning storyline, Seyffurt elaborated on his previous speculation, stating that there’s a 75% chance of SEC approving the 19b-4 filings. With the clock ticking down to VanEck’s final deadline on May 23, the SEC still need to sign off on the S-1 filings before these funds can become a reality. S-1 approvals are not instant–they teeter on a timeline of several months. Consequently, it could be a while before the Spot Ethereum ETFs make their debut.

This lengthy timeline hasn’t dampened the enthusiasm of the Ethereum whales. These robust investors continue to buoy Ethereum’s price. Market intelligence data illustrates that these investors purchased over 110,000 ETH ($341 million) between the 19th and 20th of May. This bold move seems to have paid dividends, given Ethereum’s price had been pegged to rumors of a rejection.

This positive development has fueled speculation on how Ethereum, along with other altcoins, might ride on this wave to significant market shifts. Crypto analyst Michaël van de Poppe had earlier opined that the news about the Spot Ethereum ETFs would catalyze a rally for Ethereum and altcoins.

Sharing his portfolio rejig, Van de Poppe revealed that he had exchanged his Bitcoin holdings for Altcoins. His reasoning? He believes Ethereum and other altcoins will likely undergo a bullish reversal once the Spot Ethereum ETFs news breaks out, calling this eventuality a “denial.” His rationale hinged on the crypto token already factoring in this news.

Going beyond the expected, Van de Poppe speculated that if the news exceeds expectations, as it currently does, the outlook might be even rosier with SEC’s approval likelihood increasing.

Piling onto the growing legion of voices, crypto analyst Javon Marks suggested that an Ethereum breakout will ring in the altcoin season. Indeed, this prediction is manifesting. Witnessing the significant price gains of other altcoins in the last 24 hours correlates with Ethereum’s performances, affirming its place as the second-largest crypto token by market cap.