Bloomberg analysts have increased the likelihood of approval for Ethereum Spot ETFs to 75%, leading to a significant rise in the price of ETH.
Market Reaction to Potential Approval of Ethereum Spot ETF
Bitcoin also benefited from this development, rising by 5% and reaching $70,000. The Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale aims to convert into an Ethereum Spot ETF, also experienced a significant increase of over 23%, after trading at a more than 20% discount to its net asset value, as investors bet against SEC approval.
Regulator Accelerates Procedures
Exchanges wishing to list and trade shares of Ethereum Spot ETFs are suddenly being asked by regulators to update key documents related to these products.
The SEC has requested an accelerated update of the 19b-4 filings, which suggests possible approval before this Thursday’s critical deadline. However, this does not guarantee ETF authorization. Potential issuers must also obtain approval for their S-1 applications before the products can be marketed, and the SEC may take an indefinite amount of time to approve these documents as they are not subject to a specific deadline.
