Ethereum (ETH) price There was no significant rally after approval by the Securities and Exchange Commission (SEC). Spot Ethereum ETF. This is undoubtedly surprising, considering that this approval is expected to trigger a massive price surge for the second-largest cryptocurrency token.
Why ETH price failed to rebound
The price of Ethereum may have failed to rebound because the cryptocurrency token was already priced in on news of its potential approval. The price of ETH is worth noting. Almost 20% rebound Earlier this week, Bloomberg analysts said Eric Balchunas and James Seiffart The probability of approval increases from 25% to 75%, indicating that there is a close chance of approval.
Therefore, this could have resulted in something like this: A typical ‘news selling’ event., many traders are currently profiting from their initial ETH investments. NewsBTC reported that Ethereum whales purchased more than 110,000 ETH ($341 million) between May 19 and 20, positioning themselves ahead of any news regarding the potential approval of these funds.
Meanwhile, historically speaking, this was to be expected from the price of ETH, considering that Bitcoin (BTC) has experienced a significant decline since February 20, 2019. Spot Bitcoin ETF Approved.
However, what is notable is that unlike Bitcoin ETFs, which begin trading right away, these spot Ethereum ETFs Transaction does not start just now. The SEC has only approved exchange filings (19b-4s) and registration filings (S-1s) must be approved for these funds to begin trading.
The fact that these Ethereum ETFs have not yet begun trading could be another reason why the ETH price is not reacting positively to these developments. Approval of registration applications, which could take weeks or months, may therefore be needed to trigger another rally. Ethereum and other altcoins By extension.
The important positive is that ETH is up over 28% in the last 7 days. This is a big problem considering that cryptocurrency tokens have been lagging for some time and have not been able to match other major cryptocurrency tokens.
Another reason to be bullish on Ethereum
Approval of the Spot Ethereum ETF is a clear indication that the SEC is not considering it. ETH is a securityContrary to before report It is possible that the Committee may have held this belief for some time.
TuongVy Le, General Counsel anchorage digitalMarked with an X (formerly Twitter) post Funds with more than 40% of assets in securities cannot register through Form S-1, but can register through Form N-1A or N-2.
Therefore, if the SEC had considered ETH a security, it would have rejected S-1 filings made by various fund issuers, including: black stone after that Ethereum ETF You will hold ETH as your main asset.
At the time of writing, ETH is reportedly trading at around $3,803. data From CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com