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SEC to Decide on Spot Ethereum ETF: Bullish Hopes Meet Rejection Fears

source-logo  coinedition.com 20 May 2024 15:36, UTC

The fate of the much-anticipated Spot Ethereum (ETH) (ETF) hangs in the balance, with a decision by the SEC expected in three days.

Cryptocurrency trader Crypto Rover, founder of CryptoSea, believes the market widely anticipates a rejection of the ETF. He suggests that this bearish sentiment may already be factored into current Ethereum prices. However, Crypto Rover argues that an approval could trigger a significant price increase for Ethereum.

“In exactly 3 days we will have the Spot #Ethereum ETF decision. The consensus is that they will be denied, causing this bearish scenario to be already priced in. But in case of an acceptance, $ETH will pump HARD.”

Following the SEC’s green light for 11 spot Bitcoin ETFs in January, market observers have been eagerly awaiting a similar decision for Ethereum. If approved by May 23, this would mark the launch of the first wave of Ethereum ETFs.

However, several experts have expressed growing skepticism regarding the ETF’s approval. Bloomberg ETF analyst Eric Balchunas has significantly downgraded his estimate of the SEC’s approval chances, from a high of 70% in January to just 35% by May.

“Our odds of ETH ETF approval by [the] May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5 [months] out for BTC spot are not there this time. Note: 35% isn’t 0%, still poss, and and long-term we think it will happen.” Balchunas stated.

James Seyffart, another Bloomberg ETF analyst, also weighed in, noting the lack of activity from key players leading up to the SEC’s May 23 decision deadline.

At the time of writing, Ethereum is trading at $3,100, down 0.20% for the day.

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