The price of ether (ETH) saw a significant increase of over 10% to $3.4K following a positive analysis from Bloomberg analysts regarding the approval of spot ETH exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Previously, the market had expected rejections of proposed funds this week.
Bloomberg’s Senior ETF Analyst, Eric Balchunas, and colleague James Seyffart raised the odds of spot Ether ETF approval to 75%, up from 25%. Balchunas mentioned a change in sentiment within the SEC, indicating a possible shift in regulatory stance on what he referred to as an “increasingly political issue.” This unexpected change caught many off guard, leading to a flurry of activity as investors reevaluated their positions.
The SEC is facing imminent deadlines for final decisions on spot ETF approvals or denials, following delays in making determinations on these funds.
The surge in ETH prices also had a positive impact on Bitcoin (BTC), which rose over 5% and neared the $70,000 mark. The Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale aims to transform into a spot ETF, also experienced significant movement. ETHE, which had been trading at a discount to its net asset value as investors anticipated SEC disapproval, surged more than 23% on Monday in response to the optimistic outlook for spot ETH ETF approval.
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