Ethereum (ETH) ETF Approval Odds Surge, ETH Surged Almost 18%

Ethereum prices surged 18% after Bloomberg analysts and a Polymarket contract sharply increased the odds of spot Ethereum ETFs being approved by the US SEC this month. This follows the SEC asking exchange applicants to update their 19b-4 filings on an accelerated basis, and a Polymarket contract asking whether Ethereum ETFs will be approved by May 31 jumping from 10 cents to 59 cents.

Ethereum Surges on Positive Spot ETF Approval Outlook

Ethereum prices witnessed a significant surge of nearly 18% following optimistic predictions from Bloomberg analysts and a Polymarket contract, raising the likelihood of spot Ethereum exchange-traded funds (ETFs) being approved by the United States Securities and Exchange Commission (SEC) this month.

According to sources familiar with the matter, the SEC has requested exchange applicants to expedite their "19b-4 filings," suggesting potential preparations for approving applications ahead of Thursday's anticipated decision on an Ethereum ETF launch application by fund manager VanEck.

"We are raising our odds of spot ether ETF approval to 75% (up from 25%)," stated Bloomberg ETF analyst Eric Balchunas on May 20th. He based this adjustment on rumors that the "SEC could be doing a 180 on this (increasingly political issue)."

A Polymarket contract inquiring whether Ethereum ETFs would be approved by May 31st also experienced a surge from 10 cents to 59 cents, indicating a 59% probability of these investment products receiving approval by the end of the month. Another contract, inquiring about ETH ETF approval by June 30th, is currently trading at 69 cents.

At the time of writing, the Ethereum price stood at $3,654.03, marking a 17.8% increase over the past 24 hours.

The SEC's request for expedited 19b-4 filings is considered a positive development for ETH ETF approvals. However, it is essential to note that the SEC retains the authority to reject or delay the applications.

Commenting on the situation, Bloomberg analyst Balchunas expressed, "It appears as though some of the politics of this may have changed rapidly." He further noted that crypto is becoming an increasingly politicized issue in the lead-up to the upcoming presidential election.

This theory is supported by former US President Donald Trump's recent remarks at a gathering for investors in his NFT collection. Trump emphasized his pro-crypto stance and revealed that he accepts campaign donations in digital currencies.

In contrast, current US President Joe Biden and his administration have been perceived as anti-cryptocurrency. This is largely attributed to the regulatory approach taken by SEC Chair Gary Gensler.

Previously, many believed that the SEC under Gensler would dismiss Ethereum ETF applications given his confrontational stance towards the crypto sector. However, the recent developments have prompted a reassessment of that viewpoint, fueling market optimism.

The overall market capitalization of the crypto industry rose by nearly 8% to $2.61 trillion in the past 24 hours. The meme coin sector outperformed the broader market, gaining half a percentage point to reach a market cap of $57.8 billion.

Furthermore, crypto ICOs are exhibiting strong performance, with some analysts recommending investments in promising new meme coin presales such as Dogeverse (DOGEVERSE) and Sealana (SEAL).