Ethereum (ETH) prices are skyrocketing following a significant change in predictions about the approval of an Ethereum Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
The approval of a spot Ethereum ETF would mark a significant milestone for crypto adoption. It could open the door for a broader range of investors, potentially pushing ETH to new all-time highs that could reach well beyond $5,000.
Bloomberg analysts Eric Balchunas and James Seyffart have dramatically increased their forecast for the approval of a spot Ethereum ETF from 25% to 75%. This shift comes after they detected a notable change in the SEC’s stance.
“James Seyffart and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied),” Balchunas shared.
The U.S. Securities and Exchange Commission (SEC) could start the approval process for spot Ethereum exchange-traded funds (ETFs) imminently. They noted that the SEC has requested revised Form 19b-4s from issuers to be submitted by Tuesday morning, indicating a “likely approval” as soon as Wednesday. This submission is a necessary step in the ETF approval process.
This speculation about an ETF approval has lit a fire under the crypto market. In just a few hours, the price of Ethereum surged from $3,143 to $3,676, and has risen to $3.778 at this time of writing. The excitement isn’t limited to Ethereum; Bitcoin (BTC) has also seen a significant jump, rising from $66,800 to $71,248.
The crypto world has been under a political spotlight recently. Former President Trump has positioned himself as the top choice for crypto supporters, and Democrats have opposed President Biden’s veto threat on SEC-related crypto legislation, which could have resulted in this sudden change of stance on the subject.
Stay tuned as this evolving story could have significant implications for the crypto market.
