Ethereum (ETH), which is the second largest asset in terms of market capital, has risen by 17% after news that its Exchange-Traded Fund (ETF) was approved with a greater success rate by the U.S. Securities and Exchange Commission.
Ethereum saw a major surge on the 20th of May. The current price is $3,658. There are $37 billion in 24-hour trading volume. Eric Balchunas raised from 25% to a 75% chance that an Ethereum exchange traded fund would be approved by Bloomberg’s senior analyst.
Analyst noted the U.S. SEC’s accelerating pace in approving the ETF could be due to the pressure from political forces, since their prior stand showed little engagement with ETF applicants.
Balchunas stated also that the SEC appears to be urging exchanges like the NYSE or Nasdaq, revise the filings they make. However, there is no official confirmation by the regulator.
Nate Geraci is the co-founder and president of ETF Store. noted It is not yet finalized whether individual funds must be registered (S-1).
Geraci says that the SEC can accept exchange rule amendments (19b-4s), independently of the registration of the fund (S-1), and this could be delayed by several months. VanEck’s Ethereum spot ETF The deadline for submitting a request is the 23rd of May.
This delay will give the regulator time to review and approve the documents. It is important that the regulator considers the risks and complexities of systems using Proof-of-Stake cryptocurrency.
SEC already has been looking into whether etherThe Ethereum Blockchain’s main native asset is now a security. This follows a formal investigation launched after the Ethereum network changed from an proof-of-work The consensus-based mechanism (PoW). proof-of-stake (PoS) mechanism.
SEC can reject spot ETF applications if they determine that ether is considered a security.
QCP Capital analysts believe this to be the case. “resounding lack of interest” In the market combined with approval of spot Ethereum ETF. might provoke a short squeezeWhich could “easily” Restore ETH’s recent trading highs from March 12, where it reached $4,066, according to CoinMarketCap.
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Source: crypto.news