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Ether’s price has surged more than 20% to approximately $3,792, driven by rumors that US regulators may finally approve Spot Ethereum ETFs. The rally has caught traders off guard, as most had anticipated that the Securities and Exchange Commission (SEC) would delay or reject the first ether ETF by Thursday.
Standard Chartered is bolstering the bullish sentiment. The bank stated it is 80%-90% confident that Ether spot ETFs will launch in the US this week.
“After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval,” said Geoff Kendrick, Head of FX Research and Digital Assets Research. “In U.S. dollar terms, that equates to roughly $15 billion to $45 billion.”
Decision Day for Ethereum ETFs: Will the SEC Give the Green Light?
Adding to the momentum, Bloomberg Intelligence analyst Eric Balchunas significantly raised his prediction for approval to 75%, up from 25%.
In a post on X, the analyst noted he was hearing “that the SEC could be doing a 180 on this (increasingly political issue), so now everyone is scrambling (like us everyone else assumed they’d be denied).”
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The US markets regulator is scheduled to announce its decision on several Ether ETF applications this week. Previously, analysts and investors believed these applications would be denied.
Meanwhile, Grayscale’s Ethereum ETF has risen by 23%, reaching $32.76 per share. The momentum extends beyond Ethereum, with the entire cryptocurrency market rallying. Bitcoin is up 5% and approaching the $70,000 mark.
After nearly a decade for spot Bitcoin ETFs to gain approval, analysts were generally pessimistic about the potential for an Ethereum ETF to follow a quicker path. However, this sentiment appears to have shifted, surprising many market participants.
VanEck, ARK Lead Charge for Spot Ether ETFs
The SEC is now on a tight schedule to decide on the first applications for spot Ether ETFs. VanEck and ARK Investment Management are at the front of the line, with deadlines for the SEC decision set for May 23 and May 24, respectively. These issuers, along with seven others, are seeking approval to launch ETFs that directly track the price of Ethereum.
This week, Fidelity amended its application for a spot Ether ETF with the SEC. This move follows rumors of a policy shift by the SEC regarding these funds, potentially influenced by political factors. The regulator has reportedly asked issuers to update their applications (19b-4 filings) before proceeding.
