The U.S. Securities and Exchange Commission (SEC) approved the 19b-4 trading rule change documents for eight Ethereum spot ETFs on May 24, taking an important step towards the listing of Ethereum spot ETFs. The market is paying close attention to when the SEC will approve S -1 Registration statement document and official listing.
However, the market is currently experiencing a wave of decline. After the SEC approved the 19b-4 document, the price of ETH once hit a high of $3,977, but then continued to fluctuate and fall. On the 18th of this month, it once hit $3,355, a drop of as much as 13.7%.
However, there has been a significant rebound in the past two days, and it has fallen back to US$3,545 before the deadline. Compared with the increase of Bitcoin, it is much stronger, and all the losses in the past week have been recovered.
Ethereum Spot ETF Could Push ETH Price Near All-Time Highs of $4,800
Against this background, digital asset trading company QCP Capital issued an article yesterday stating that the price of ETH has risen sharply from the low of $3,400 on the 18th, and the implied volatility has increased significantly to 65% in the short term. There are two major reasons behind this strong bullish sentiment. major factor:
- The U.S. Securities and Exchange Commission (SEC) has decided to end its investigation into Ethereum 2.0, ruling out charges that ETH sales are securities transactions.
- According to sources, potential issuers of Ethereum ETFs are actively responding to the SEC’s opinions and plan to submit a response within this week.
QCP Capital noted that the options market is currently showing optimism, with very active trading in upside options across different maturities observed. In addition, QCP Capital also predicted that after the listing of the Ethereum spot ETF, the price of ETH is expected to be close to the historical high of $4,800:
Although there is uncertainty about the market's acceptance of Ethereum spot ETFs, if it can capture 10%~20% of the flow of Bitcoin spot ETFs, it will likely push the price of ETH to exceed $4,000 and approach its historical high of $4,800.
SEC will end its investigation into Ethereum
According to previous reports from Dongzhong, Consensys, the parent company of Metamask Wallet Metamask, received a Wells Notice from the SEC in April. The SEC determined that Consensys was an unlicensed broker-dealer and intended to take enforcement action on the grounds that MetaMask Wallet violated securities laws.
In order to defend the Ethereum ecosystem, Consensys also filed a complaint with the SEC that month, accusing the SEC of intending to recognize Ethereum as a security, which was an "illegal seizure of power" over Ethereum, and asked the court to declare that Ethereum is not a security, and claimed that any Ethereum is a premise for securities, and the investigation into ConSenSys will violate administrative procedures.
After two months of silence, Consensys tweeted earlier yesterday to announce that the SEC would end its investigation into Ethereum and would not accuse Ethereum sales of securities trading:
Today we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC Enforcement Division has informed us that it is concluding its investigation into Ethereum 2.0, which means the SEC will not allege that ETH sales were Securities trading.
Ethereum spot ETF issuer to respond to SEC comments by Friday
At the same time, according to The Block , two people familiar with the matter revealed that the Ethereum spot ETF issuer has received comments from the SEC on the S-1 filing last week and plans to submit a response by this Friday. One issuer ’s sources said the latest round of comments were “reasonable” and expected approval soon, while a source at another publisher called the comments “lighthearted.”
Previously, Bloomberg analyst Eric Balchunas, who has been closely following ETF trends, issued an article on the 15th predicting that the launch date of the Ethereum spot ETF will be advanced to July 2:
We have moved up the launch date of the Ethereum spot ETF to July 2. I heard that today the staff (SEC) provided comments on Form S-1 to the issuer. These comments are brief and have no major issues, and they require a response within a week.
As many institutions and analysts release news about the progress of the SEC's approval of the Ethereum spot ETF, we are getting closer and closer to the listing of the Ethereum spot ETF. However, whether the cryptocurrency market can get rid of the depressed mood of continued decline through the listing of Ethereum spot ETF still requires continued attention.
