SEC Moves Toward Ether ETF Approval

The U.S. Securities and Exchange Commission (SEC) has requested that exchanges update their 19b-4 filings for ether (ETH) exchange-traded funds (ETFs) as a key decision deadline approaches. This request suggests that there might be progress toward the approval of ether ETFs, although approval is not yet certain. Following this development, ether opened the trading day in Asia above $3,600, marking a 17% increase. This surge is attributed to the growing optimism regarding the potential approval of an ether ETF, which has also positively impacted the prices of various Polymarket contracts. The CoinDesk 20 index, which tracks the performance of the market’s largest digital assets, rose nearly 8%.

CoinDesk reported that the SEC’s move to ask for updated 19b-4 filings indicates significant progress toward the approval of a spot Ether ETF. These filings involve proposed rule changes, hinting at potential regulatory advancements. However, the SEC still holds the authority to reject the S-1 registration statement of the ether ETF, which could delay its approval and trading.

In response to this development, the ether implied volatility curve, which reflects market expectations of future price volatility across different strike prices and expiration dates, has flattened. Additionally, 25-delta risk reversals reached year-to-date highs above 18%. Traders have been actively purchasing $4,000 call options for expiration dates on May 24 and May 31, according to analysts from Presto Research in a note shared with CoinDesk.

The likelihood of an ether ETF approval has also been reflected in Polymarket contracts. A contract speculating on whether an ether ETF would be approved by May 31 jumped from 10 cents to 55 cents, indicating a 55% chance of approval by that date. Another contract predicting approval by June 30 is trading at 68%.

Notably, decisions on two specific ether ETF proposals are imminent. VanEck’s ether ETF decision is expected on May 23, followed by Ark’s on May 24. These dates are crucial as they may further influence market sentiment and the future of ether ETFs.

Happy Trading! 

👉Join our Trading Community and Earn Airdrops! 👈

Finally, if you learned something, hit that UP ARROW ⬆️ and SHARE. 🔁

You found this content helpful ?

  1. 1
    Join our free weekly "Bubble Bulletin" for more
  2. 2
    Join us on Discord for live chat and daily updates
  3. 3
    Follow us on Twitter
  4. 4
    Share this content using the buttons below :

Disclaimer

This piece of content is provided for educational and entertainment purposes only. Robin Technologies and Analytics LLC is the firm that distributes 1.2 Labs products. The firm does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Robin Technologies and Analytics LLC registered as an investment adviser or broker-dealer in any jurisdiction.

You should expect no financial returns one way or another based on statements contained herein. These points hold equally for any statements that could be attributed to The Art of The Bubble or any related business entities or personnel operating in association with Robin Technologies and Analytics LLC.

If you decide to buy or invest in anything, then your returns and potential losses are your own. No statements about taxation are taxable advice and you are encouraged to consult your own tax professional. You are also encouraged to do your own due diligence before investing in anything.

RELATED POSTS:

June 13, 2024

March 20, 2023

August 15, 2022

November 6, 2022

May 16, 2023

May 9, 2023

April 19, 2023

January 13, 2020

June 11, 2021

LATEST POSTS:

June 17, 2024

June 13, 2024

June 11, 2024

June 10, 2024

June 6, 2024

June 5, 2024

June 4, 2024

June 3, 2024

May 29, 2024

What do do now?

Join the free 1.2 Labs "Bubble Trading" Bulletin for new trading strategies, macro & sentiment analysis and occasional free airdrops