After months of being stuck in crypto purgatory, the SEC might just be ready to make a dramatic turnaround and approve the Ethereum ETF. Bloomberg’s ETF analysts, Eric Balchunas and James Seyffart, have significantly increased the odds of a spot ETH-USD ETF approval from a dismal 25% to a much more bullish 75%.
The Great SEC Flip-Flop
Similarly, the Wall Street Journal reported that the SEC requested updated 19b-4 forms, a term colloquially known as fancy speak for the SEC’s request to fill out certain forms to move forward. This development has Ethereum (ETH) ETF issuers scrambling to get their applications in order before the final decision deadline on May 23. Why this sudden change of heart? Well, according to Eric Balchunas, the SEC’s newfound enthusiasm for Ethereum might be less about the technology and more about politics. The Biden Administration has recently been adopting an anti-crypto stance, but the increasing politicization of crypto might be pressuring the SEC to cooperate.
Market Whiplash
Until yesterday, sentiment around the approval of a spot ETH ETF was as cheerful as a funeral. Crypto betting platform Polymarket had the odds sitting at a bleak 11%. Experts have been saying that the silence from the SEC was a bad sign, but the approval of commodity futures-based ETH ETF products last October was a big hint that Ether isn’t viewed as a security.
From a technical analysis perspective, Ethereum’s performance yesterday was spectacular. ETH’s daily gain of +19.17% was its best day since July 18, 2022. And if it holds onto its present weekly gains (+22.91%), it could be the best week Ethereum has had since August 2021.
Now, with ETF experts feeling bullish again, the crypto market is buzzing. Consensus is forming: ETH ETF approval could be a sure thing this Thursday. Or not. Because it’s the SEC, and they have a contentious relationship with crypto. We’ll keep our eyes on it.
Is Ethereum a Buy?
According to TipRanks’ Summary of Technical Indicators, Ethereum is a Buy.
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