Possible ETF approval as early as May 23 💡
The price of Ethereum has surged more than 20% since the beginning of this week, breaching the $3800 level, following reports of possible approval of Ethereum spot funds (ETFs) by the US Securities and Exchange Commission (SEC) this week. The earliest possible approval could take place on July 23, while the Polymarket contract suggests a 55% probability of approval by May 31.
SEC's attitude change:
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالThe SEC was initially expected to reject applications for Ethereum ETFs due to a lack of cooperation from the authority. However, reports surfaced yesterday that the SEC has accelerated the 19b-4 application process, suggesting progress toward approval. Bloomberg analysts raised their expectations for approval of Ethereum ETFs to 75%. The SEC's change of heart is likely due to growing political pressure ahead of the upcoming US elections.
What is the price situation?
Ethereum scores on Monday its best session since 2022. In addition, this week's growth already exceeds 20%. Nevertheless, the price is still about 7% from the March peaks and 27% from the historical maxima of 2021. It is also worth noting that there has been increased interest in call options on Ethereum with a strike price of $4,000. Of course, it is worth remembering that there could be disappointment and rejection of applications for Ethereum ETFs, which could lead to a complete price retreat. Nevertheless, as Bitcoin's situation shows, the inflow of funds in the last four business days has led to a rise above $70,000.
Source: xStation5
There has been a breakout of the 1-year and 5-year averages. The last time a similar signal occurred was in 2021, which led to a continuation of the powerful multi-month rise. Source: Bloomberg Finance LP, XTB
