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.

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