Key Developments in Ether ETF Approval Process
The U.S. Securities and Exchange Commission (SEC) has requested exchanges to update 19b-4 filings for Ether ETFs ahead of a critical deadline, signaling potential progress toward approval. While this step indicates movement, final approval remains uncertain.
Market Reaction to Regulatory News
- Ether’s Price Surge: Ether jumped 17% to over $3,600 as optimism around ETF approval grew.
- Broader Market Impact: The CoinDesk 20 index, tracking major digital assets, rose nearly 8% amid positive regulatory developments.
Details on SEC’s ETF Review Process
The SEC’s request for updated 19b-4 filings—which propose rule changes—suggests advancing discussions. However, the SEC could still delay approval by rejecting the S-1 registration statements required for trading commencement.
Trading Activity and Market Sentiment
Analysts observed heightened trading activity:
- Implied Volatility: The Ether volatility curve flattened, with 25-delta risk reversals hitting year-to-date highs above 18%.
- Call Options: Traders aggressively bought $4,000 calls expiring in late May, reflecting bullish expectations.
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Polymarket Contracts Reflect Approval Odds
- May 31 Approval: A Polymarket contract predicting ETF approval by May 31 surged from 10% to 55%.
- June 30 Approval: Another contract estimates a 68% chance of approval by June 30.
Upcoming ETF Decision Deadlines
- VanEck’s Proposal: SEC decision due May 23.
- Ark Invest’s Proposal: Decision expected May 24.
FAQ Section
Q: What does the SEC’s 19b-4 filing update mean?
A: It indicates progress but doesn’t guarantee approval. The SEC must also greenlight S-1 filings.
Q: How does ETF approval impact Ether’s price?
A: Anticipation has driven prices up; approval could further boost institutional investment.
Q: Are Polymarket contracts reliable predictors?
A: They reflect crowd sentiment but aren’t official indicators.