The optimistic sentiment continues to rise as the U.S. Securities and Exchange Commission (SEC) has shown a significant change in attitude towards the potential approval of a spot Ethereum ETF, exciting cryptocurrency investors and driving the market to continue its upward trend.
According to sources cited by Barron’s, SEC staff members expressed their inclination to approve these products to the exchanges on Monday, stating that if the “outstanding issues” with the ETF applications are resolved in a timely manner, approval could be granted as early as this week.
Reuters also reported that the SEC has requested Nasdaq, Chicago Board Options Exchange (CBOE), and New York Stock Exchange (NYSE) to update and amend their existing application documents before the upcoming deadlines.
As of the time of writing, the trading price of Bitcoin is $69,750 with a 24-hour increase of 0.56%, and the trading price of Ethereum is $3,740 with a 24-hour increase of 8.9%.
The stock market also saw gains on Tuesday, with both the Nasdaq and S&P 500 indexes reaching new all-time highs. At the close, the S&P, Dow Jones, and Nasdaq indexes rose by 0.25%, 0.17%, and 0.22% respectively.
The altcoin market was boosted by the positive development of Ethereum, with the top 200 tokens experiencing a general increase on Tuesday. Ethereum Name Service (ENS) performed the best, rising by 29.3%, followed by SKALE (SKL) with a 20.4% increase, and Metis (METIS) with a 16% increase. Reserve Rights (RSR) experienced the largest decrease, falling by 9.8%, followed by Arweave (AR) with a 9.3% decrease, and Raydium (RAY) with a 7.7% decrease.
The current total market capitalization of cryptocurrencies is $2.57 trillion, with Bitcoin’s dominance rate at 53.1%.
Various issuers are rushing to amend their proposals, mixed opinions within the SEC
The deadline for the first round of spot Ethereum ETFs is approaching, with VanEck’s deadline on May 23 and Ark Invest/21Shares’ deadline on May 24.
As of the time of writing, at least five spot Ethereum ETF issuers, including Fidelity, Invesco/Galaxy, Ark/21Shares, and Franklin Templeton, have submitted revised 19b-4 filings.
According to the revised preliminary prospectus, Grayscale has abandoned the proposal to include a pledge in its proposed conversion of Ethereum to ETF, and other issuers have also removed the pledge provisions from their spot Ethereum ETF applications. Earlier on Tuesday, Fidelity withdrew the possibility of offering a pledge reward from its S-1 registration statement.
Bloomberg ETF analyst James Seyffart stated that Grayscale’s move was expected. In a post on X, Seyffart said, “It looks like Grayscale is removing the pledge language in its ETHE conversion to ETF filings. (This is/expected).”
According to sources cited by The Block, the SEC’s Division of Trading and Markets previously notified the exchanges that they would approve the 19b-4 filings this week. The issuers responsible for the S-1 filings have contacted the SEC, but it seems that the SEC’s Division of Corporation Finance is not in agreement with the Division of Trading and Markets.
It is worth noting that the Division of Trading and Markets of the SEC is responsible for reviewing 19b-4s, while the Division of Corporation Finance is responsible for reviewing S-1s.
An insider said, “They haven’t even coordinated internally yet, which is why this is likely a political decision.” The source said they wouldn’t be surprised if this becomes an election issue.
Regarding the withdrawal of comments on 19b-4s, the insider commented, “The work the SEC did is like writing a term paper the night before the deadline.”
Analysts optimistically predict that Bitcoin will reach a new all-time high by the weekend
Geoff Kendrick, Head of Foreign Exchange Research and Digital Assets Research at Standard Chartered Bank, stated in a report that the approval of Ethereum spot ETFs this week will further legitimize the cryptocurrency industry, which is beneficial to Bitcoin as well.
He said, “I expect Bitcoin to reach a new all-time high by the weekend, surpassing the level of $73,798 on March 14.”
Kendrick added that the new optimistic sentiment surrounding the potential approval of Ethereum spot ETFs this week gives him more confidence in his price targets for Bitcoin of $150,000 by the end of 2024 and $200,000 by the end of 2025.
Market analyst Bloodgood stated, “Recently, it’s hard to have a week without shameless attacks on cryptocurrencies by Gensler, Warren, and others. The unexpected request from the U.S. Securities and Exchange Commission to expedite the update of the documents shows that if they had already decided to reject these filings this week, they wouldn’t have done so. Therefore, the likelihood of approval has increased dramatically, making it the headline news to watch this week.”
As for Bitcoin, Bloodgood pointed out that the upward trend continues after reaching a local low in early May, and BTC has experienced two significant breakouts after last week’s CPI data came in lower than expected.
Bloodgood outlined three possible scenarios for the future:
(1) False breakout: It needs to be observed whether this breakout will be sustained as, if it turns out to be a false breakout, the local low is expected to be retested.
(2) Range: If the bulls manage to hold the $69,000 level and Bitcoin fluctuates between that level and the current all-time high, altcoins will have a chance.
(3) ATH breakout: If the bulls successfully break through the all-time high level, we will see more funds flowing into Bitcoin, and altcoins will gradually follow suit, possibly approaching $80,000.
He said, “All three options are possible, and only time and charts will tell us which one will play out.”
Author: Mary Liu, Bitpush News
Twitter: https://twitter.com/BitpushNewsCN
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Tags: 2023 Market Trend, SEC, Bulls, Fidelity, Altcoins, Bitpush Daily Market Update, Bitcoin, Grayscale, Bull Market, Spot Ethereum ETF, Regulation, BlackRock
Note: All articles by Bitpush represent the author’s opinion and do not constitute investment advice.
Original article link: https://www.bitpush.news/articles/6770973
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