“Ethereum” ETF Approval Optimism Fuels Crypto Frenzy: Frenzied Activity in the Crypto Market Ahead of the Anticipated
Approval Date on May 23.
The US Securities and Exchange Commission (SEC) has Requested Updates
to “19b-4” Filings to Change the Rules Allowing Trading.
Standard Chartered Expectations Inflows into “Ethereum” Funds Between $15 and $45 Billion in the First 12 Months.

Content:

Growing Optimism

The US Securities and Exchange Commission
Increased Activity

Ethereum Price Surge

Bitcoin ETFs

Increasing Speculation of Approval

Growing Optimism:

The cryptocurrency market is engulfed in a frenzy amid increasing optimism for regulatory
approval of exchange-traded funds (ETFs) that invest directly in Ether, marking a sharp shift in sentiment.
This change comes amidst a wave of activity among potential fund issuers,
the stock exchanges where they will be traded,
the US Securities and Exchange Commission (SEC).

The US Securities and Exchange Commission:

The SEC has asked the New York Stock Exchange and Cboe Global Markets to update their “19b-4” filings,
which propose rule changes to allow funds to trade on the exchanges,
according to informed sources who requested anonymity.
One insider said this step indicates that the chances of SEC approval might increase.
However, he added that a green light is by no means guaranteed.
One of the sources mentioned that the US regulator requested what is known as a global comment,
meaning all filings must be resubmitted using the same language.

Meanwhile, on Tuesday, Fidelity Investments updated its S-1 registration statement with the SEC
Regarding its application to list its spot trading fund in Ethereum.
Among other things, the issuer stated it will keep the Ether it buys from programs that
pay rewards for blockchain maintenance – a process known in industry terms as staking.

– and will not invest in derivatives.
Staking has sparked contention for Ether,
raising questions about whether regulators should treat the token as a security.

Increased Activity:

The increased activity between the SEC, investment firms,
and exchanges comes before the May 23 deadline for the regulator to approve or deny VanEck’s fund application.
In a note, Gautam Chhugani and Mahika Sapra, analysts at Bernstein, said,
“Given the political drama behind the scenes, approval will be seen as significant regulatory relief for the sector.
We expect a more lenient regime ahead of the US presidential elections.”

Ethereum Price Surge:

Ether, the native token of the Ethereum blockchain and the most important commercial highway in the crypto space,
Began to rise on Monday and surged by up to 25% in the past two days.
It traded at around $3,800 after Bloomberg Intelligence ETF analyst Eric Balchunas said
he raised the likelihood of approval for a spot ETF in Ether from 25% to 75%.

An SEC spokesperson said the agency does not comment on individual filings.
Spokespeople for the New York Stock Exchange, Nasdaq, and Cboe declined to comment.
Grayscale did not immediately respond to a request for comment.

In a recent note, an analyst at Standard Chartered, Jeff Kendrick, said,
“We expect significant ETF-driven inflows to Ethereum, similar to Bitcoin ETFs since their approval.”
Kendrick estimated that spot Ethereum ETFs could attract inflows of
about $15 billion to $45 billion in the first 12 months after approval.

Bitcoin ETFs:

In January, the SEC faced a similar deadline for Bitcoin ETFs and ended up approving 10 funds simultaneously.
These approvals were also preceded by a series of document amendments requested by the regulator.
Bloomberg reported on May 17 that the lack of similarly robust interaction with the regulator before Monday
led some issuers to brace for rejections.
The new batch of Bitcoin ETFs in the US has attracted net inflows of about $13 billion,

accumulating nearly $59 billion in assets since their launch on January 11.
They have been hailed as one of the best product category launches in industry history.
On April 30, Bitcoin and Ether ETFs also started trading in Hong Kong.
They currently manage $294 million in assets.

Increasing Speculation of Approval:

Another notable sign of growing speculation for approval is the Grayscale Ethereum Trust (ticker ETHE),
which Grayscale Investments hopes to convert into an ETF if the SEC approves.
According to data compiled by Bloomberg, the fund ended Monday
trading at a nearly 12% discount to its underlying Ether holdings,
a significant improvement from a 20.5% discount on Friday
and a sharp decrease from a 53% discount recorded a year ago.
The SEC observed a similar pattern in January before approving the conversion of Grayscale’s Bitcoin Trust.
Which now trades at par with its underlying assets.

Ether prices began to rise on Monday after Bloomberg Intelligence ETF analyst Eric Balchunas raised
The likelihood of approval for a spot ETF in Ether is 25% to 75%.
An SEC spokesperson said the agency does not comment on individual filings.
Spokespeople for the New York Stock Exchange, Nasdaq, and Cboe declined to comment.
Grayscale did not immediately respond to a request for comment.

“Ethereum” ETF Approval Optimism Fuels Crypto Frenzy

&#8220;Ethereum&#8221; ETF Approval Optimism Fuels Crypto Frenzy

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“Ethereum” ETF Approval Optimism Fuels Crypto Frenzy