Ethereum price soars amid speculation about possible approval of Ethereum ETF in May

Bloomberg Senior Exchange Traded Fund Analyst Eric Balchunas said 70% chance of on-site approval Ethereum ETH

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By May of this year, we received exchange-traded fund (ETF) approval from the U.S. Securities and Exchange Commission.

In the last 24 hours, the price of Ethereum has risen 8% to $2,613, recording a growth of almost 18% over the past 7 days. Crypto industry experts say this signals investor optimism about a potential Ether ETF after the SEC approved 11 spot Bitcoin ETFs earlier today.

“Starting with the BTC ETF, a ‘buy the rumor, ignore the news, buy the next rumor’ approach is taking shape,” said Joe Caselin, head of institutional marketing at BIT cryptocurrency exchange. “BlackRock submitted an application for an ETH ETF in November 2023. This is a lot less certain than the numerous BTC ETF applications that have just been approved, but since it will already be the first product for ETH, the potential is huge. “Great appeal to institutional investors”

Black Rock, I’m looking forward to it. Bitcoin ETF Launches on Thursday, which has received 575 approvals from regulators and has a record of only one ETF rejection. The deadlines for the SEC’s first final decision on Ark and 21Shares’ on-site ETH ETF applications are as follows: May 23.

There still remains uncertainty surrounding the approval of an Ethereum ETF, given current SEC Chairman Gary Gensler’s adamant stance that all cryptocurrencies other than Bitcoin are financial securities. That said, Gensler’s predecessor, Jay Clayton once mentioned it. If a small number of tokens become widely dispersed, they may no longer be considered securities. Former SEC corporate finance director William Hinman also said in a 2018 speech that Ether coin is not a financial security, given its decentralized nature.

Is Solana ETF possible?

If the SEC decides to approve a spot Ethereum ETF, other large cryptocurrencies like Solana could be next, Rachael Lucas, a cryptocurrency technology analyst at Australia-based cryptocurrency exchange BTC Markets, told The Block. “Although Solana is a relatively young ecosystem compared to Bitcoin or Ethereum, positive news and notable performance in 2023 marked by increased developer activity have captured investor interest. Solana, in particular, achieved an impressive price increase of 920%, significantly surpassing Bitcoin’s 155% growth over the same period,” Lucas said.

BIT’s Caselin shared the same view that the launch of the Ethereum ETF would provide more financial instruments, providing access to a wider variety of crypto assets. “We may look at a variety of ETFs that provide access to the highest market capitalization tokens and projects, but we may be better suited to a top 50 ETF rather than 50 individual ETFs. ‘Blue Chip’ token.”

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