ETH increased 20%, BTC climbed back to 72,000 USD to positive signals about Ethereum ETF from SEC

ETH jumped 20% to $3,700 after the SEC asked institutions filing for an Ethereum spot ETF for additional information.



According to CoinDesk's sources on the morning of May 21 (Vietnam time), the US Securities Commission (SEC) has asked those submitting applications to establish an Ethereum spot ETF to submit additional 19b-4 documents. This is the SEC's first positive move on the prospect of approving an Ethereum ETF after many long months of silence.

Form 19b-4 is filed to notify the SEC of changes to the ETF proposal and is one of the documents required to proceed with approval.


https://t.co/yCdwvOyxoC— db (@tier10k) May 20, 2024
In response to the latest developments, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised the probability of an Ethereum spot ETF being approved this week from 25% to 75%, citing the SEC's ongoing investigation. Regulatory pressure requires a change in attitude towards ETH.


Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om— Eric Balchunas (@EricBalchunas) May 20, 2024

As reported, May 23 is the first deadline for the SEC to approve or reject VanEck and ARK Invest's Ethereum ETF proposal. However, the general sentiment of investors before that was very low, partly because the SEC had no constructive dialogue with ETF initiators, unlike the pre-ETF Bitcoin spot period, partly The other is because of the anti-ETH stance of SEC Chairman Gary Gensler, who has recently targeted many companies in the Ethereum ecosystem such as Uniswap and Consensys, as well as continuously being vague on the question of securities classification for ETH coin.

Ethereum spot ETF proposals are under review by the SEC. Photo: Bloomberg

ETH price has reacted extremely positively to the above rapid changes. The world's second largest cryptocurrency has increased by 20% in the past 6 hours, increasing from 3,150 USD to 3,720 USD - the highest price since early April.
4h chart of the ETH/USDT pair on Binance at 08:10 AM on May 21, 2024

Statistics from VeloData show that Ethereum's capitalization increased by 70 billion USD on the morning of May 21 - nearly equal to Solana's capitalization, thereby setting a record for the highest daily increase in history.

The Banana Zone Candle pic.twitter.com/1czQtJwknz— Hsaka (@HsakaTrades) May 21, 2024
Bitcoin (BTC) price also skyrocketed 7% to nearly 72,000 USD, supporting the recovery momentum of the whole market, signaling another day of strong inflow from BTC ETFs and extending the series of consecutive days of inflows. Continue to number 6.
4h chart of the BTC/USDT pair on Binance at 08:10 AM on May 21, 2024

In the last 12 hours, there were nearly 285 million USD in derivative orders liquidated on the market, the majority being BTC and ETH, with 86% being short orders.