Markets
Crypto Market Soars as SEC Reportedly Moves Forward with Ether ETF Lawsuit
May 20, 2024 6:12 pm | 2 minutes reading
Cryptocurrency prices rose on Monday night as new details emerged about the Securities and Exchange Commission (SEC) moving forward with the process for the first exchange traded funds containment Ethereum (CRYPTO: ETH).
What happened: On Monday, the SEC’s Division of Trading and Markets instructed asset managers to review 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 for the Wall Street Journal.
This move was seen as a positive development by many investors, leading to an increase in cryptocurrency prices. Updated records are expected to be available in the near future, reports the WSJ.
Despite a lack of communication between SEC staff and potential ETF issuers, the SEC’s decision to direct asset managers to amend their registrations has raised hopes for an Ether ETF approval this week, according to the Journal. This led to an 18% increase in the price of Ether and an increase of over 5% in the price of Bitcoin (CRYPTO: Bitcoin).
Why does this matter: The potential approval of an Ether ETF is a significant development for the cryptocurrency market. Ether is the second-largest cryptocurrency after Bitcoin, and an ETF would make it easier for investors to gain exposure to this digital asset.
What is the next: Updated 19b-4 filings are expected to go live in the coming days, the WSJ reports. Some analysts raised their estimates for Ether ETF approval to 75% following this development.
See too: Coinbase Says Ethereum ETF Approval Is More Likely Than You Think – Here’s Why
Why does this matter: The SEC’s recent actions have sparked hope in the approval of Ether ETFs, with analysts Eric Balchunas and James Seyffart increasing the odds from 25% to 75% on Monday. However, they later clarified that the probabilities were related to 19b-4 approvals rather than final ETF authorization.
The SEC is expected to make a decision on the VanEck Spot Ether ETF on Thursday. The SEC has been investigating whether Ether, the main native asset on the Ethereum blockchain, is a security. If it is considered a security, this could be grounds for the regulator to reject spot Ether ETF applications.
What is the next: The potential approval of Ether ETFs has already had a significant impact on the market. Following the news, Bitcoin surpassed $70,000 and Ethereum price rose 14%.
Co-founder of Ethereum, Vitalik Buterinrecently praised the platform’s culture of receiving criticisma sentiment that generated mixed reactions on social media.
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock.
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