(Bloomberg) –Cryptocurrency prices are surging on the back of growing U.S. approval of an exchange-traded fund that invests directly in ethereum, the second-largest cryptocurrency token, reversing a gloomy outlook from last week.
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The market-driving speculation about the Spot Ether ETF is like a rekindling of investor enthusiasm that welcomed a comparable U.S. Bitcoin fund, whose January listing saw the biggest digital asset price rise to an all-time high. It is.
Ether rose about 14% in U.S. trading, its biggest gain since November 2022. It has since risen during Asian hours and was trading at $3,666 as of 9:33 a.m. Singapore time on Tuesday. Bitcoin at one point rose towards $72,000, with an eye on its all-time high of around $74,000 in mid-March.
The U.S. Securities and Exchange Commission is asking at least one exchange and at least one potential spot to update related 19b-4 filings, according to the people, who requested anonymity because the matter is private. The company said it has contacted the Ether ETF issuer. This is a sign that the odds of SEC approval may be increasing, one of the people said. The conversation is an unexpected turn of events, but the green light is by no means guaranteed, the person added.
ETF administrative procedures
The 19b-4 submission is only part of the required documentation. An issuer must also have her S-1 registration statement signed by a regulatory agency before launching a product. He expects a decision on at least one Spot Ether ETF application to be made by May 23rd.
An SEC spokesman said the agency does not comment on individual filings.
On social media, he said, “The SEC is likely to lean toward a likely approval, and many traders have completely ignored even the unlikely possibility of approval, so they are now scrambling to secure their positions.'' “There is speculation that this is the case,'' said analyst Chris Newhouse. At Cumberland Research Institute.
Ether is the native token of the Ethereum blockchain, the most important commercial highway in cryptocurrencies. The network is popular for decentralized financial services, where investors trade, borrow, and lend through automated software protocols rather than traditional intermediaries.
increasing odds
Bloomberg Intelligence ETF analyst Eric Balchunas said on Monday that he and colleague James Seifert have increased their estimate of the probability of the Spot Ether ETF being approved from 25% to 75%.
Some fund companies had expected the Spot Bitcoin ETF to be rejected because informal discussions with the SEC were less robust than in preparation for its launch, Bloomberg News reported on Friday, according to two people familiar with the matter. This was reported as a person's story. Private conversations will be discussed and nominated.
There remained a pronounced sense of caution among some investors. Ravi Doshi, head of markets at Falcon I saw it there,” he said.
The SEC, skeptical of cracking down on cryptocurrencies, reluctantly acquiesced to a U.S. spot Bitcoin ETF earlier this year following a court reversal in 2023. Products such as BlackRock Inc. and Fidelity Investments made him one of the most successful debuts ever for his category of funds, with assets reaching his $58 billion.
BlackRock and Fidelity are also looking to establish an Ether fund. The digital asset industry sees US ETFs as a way to expand the crypto investor base. Individual investors, hedge funds, pension funds and banks are pouring capital into Bitcoin funds, with Millennium Management, Stephen Cohen's Point72 Asset Management and Elliott Investment Management among the high-profile buyers. include.
–With assistance from Ryan Weeks.
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