The prices of cryptocurrencies saw a significant surge on Monday evening following new developments regarding the Securities and Exchange Commission (SEC) advancing the process for the first U.S. exchange-traded funds (ETFs) holding Ethereum (CRYPTO: ETH).
On Monday, the SEC’s Trading and Markets Division instructed asset managers to revise their 19b-4 filings, which are typically used to request the SEC’s permission to amend their rulebooks for listing a new type of ETF, according to The Wall Street Journal. This move was perceived as a positive sign by many investors, leading to a notable increase in crypto prices. The revised filings are expected to be live soon, which has heightened anticipation and optimism in the market.
The SEC’s directive has raised hopes for an Ether ETF approval this week. This speculation resulted in an 18% surge in the price of Ether and a more than 5% increase in the price of Bitcoin (CRYPTO: BTC). The potential approval of an Ether ETF is seen as a significant development for the cryptocurrency market. Ether, being the second-largest cryptocurrency after Bitcoin, would become more accessible to investors through an ETF, simplifying the process of gaining exposure to this digital asset.
The updated 19b-4 filings are anticipated to go live in the coming days. Analysts have raised their estimates for an Ether ETF approval to 75% following this development. However, it is important to note that these estimates relate to the approval of the 19b-4 filings, not the final ETF authorization. The SEC is expected to make a decision on the VanEck spot Ether ETF on Thursday. A key aspect of this decision involves the SEC’s determination of whether Ether is a security. If deemed a security, it could lead to the rejection of the spot Ether ETF applications.
The SEC’s recent actions have already had a substantial impact on the market. Following the news, Bitcoin surged past $70,000, and Ethereum’s price rose by 14%. This reaction highlights the market’s sensitivity to regulatory developments and the potential for significant market movements based on SEC decisions.
Ethereum’s co-founder, Vitalik Buterin, recently praised the platform’s culture of welcoming criticism, a sentiment that received mixed reactions on social media. This reflects the diverse opinions within the Ethereum community regarding the platform’s development and governance.
The SEC’s advancement of the Ether ETF process has sparked significant optimism among investors and market analysts. The potential approval of Ether ETFs could pave the way for greater institutional investment and broader adoption of cryptocurrencies. This development is a crucial moment for the cryptocurrency market, indicating a possible shift towards greater mainstream acceptance and regulatory clarity. Investors and industry stakeholders are closely monitoring the SEC’s upcoming decisions and their implications for the future of digital asset investment.
The market’s positive response to the SEC’s actions underscores the importance of regulatory clarity and the potential impact of financial products like ETFs on the cryptocurrency ecosystem. The coming days will be critical as the updated filings go live and the SEC makes its decision, potentially setting a new precedent for the cryptocurrency market.