In a significant market move, the price of Ether (ETH) surged more than 10% to $3.4K after Bloomberg analysts significantly increased the likelihood that the U.S. Securities and Exchange Commission (SEC) would approve a spot ETH exchange-traded fund (ETF). The market had previously largely expected the SEC to reject the proposed funds this week.
Eric Balchunas, senior ETF analyst at Bloomberg, tweeted that he and colleague James Seyffart had increased the odds of approval for a spot Ether ETF from 25% to 75%. Balchunas pointed to a shift in sentiment within the SEC, suggesting a potential shift in regulatory stance on what he called “an increasingly political issue.” The sudden change took many by surprise and sparked a flurry of activity as investors reevaluated their positions.
The SEC’s deadline for a final decision on approval or rejection of spot ETFs is approaching, with multiple delays in its decision on these funds.
The surge in ETH prices also boosted Bitcoin (BTC), rising more than 5% and approaching the $70,000 threshold. Also making noteworthy moves was the Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale plans to convert into a cash ETF. ETHE, which had been trading at a deep discount to net asset value as investors speculated about SEC disapproval, surged more than 23% on Monday in response to optimistic prospects for approval of the spot ETH ETF.
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