Tuesday saw a surge in cryptocurrency prices, driven by optimism surrounding the U.S. SEC's impending decision on spot Ethereum ETF applications.
Key Developments
- The SEC requested exchanges to update their 19b-4 filings for spot Ethereum ETFs ahead of critical deadlines, signaling potential approval—though not guaranteed.
- Market consensus had previously leaned toward rejection of such funds.
- Ethereum’s price spiked following rumors of SEC approval, triggering over $260 million in market-wide short liquidations—the largest since February 28.
Breakdown of Liquidations (Coinglass Data):
| Asset | Short Losses |
|------------|--------------------|
| Ethereum | $115 million |
| Bitcoin | $99 million |
Upcoming SEC Decisions
The SEC will rule on VanEck and Ark Invest’s spot Ethereum ETF applications by Thursday/Friday. Other applicants include:
- BlackRock
- Fidelity
- Invesco
- Grayscale
- Bitwise Asset Management
Market Sentiment
- Approval is viewed as bullish, paving the way for institutional capital. (Spot Bitcoin ETFs garnered $12 billion inflows since January.)
- QCP Capital forecasts Ethereum could near $4,000** if approved or drop to **$3,000 if rejected.
👉 Why Ethereum’s ETF Approval Could Reshape Crypto Markets
Contrasting Views
Bartosz Lipiński (Cube Exchange CEO) predicts a "buy the rumor, sell the fact" scenario, similar to Bitcoin ETF approvals:
- Short-term rally pre-decision.
- Potential sell-off regardless of outcome.
FAQs
1. What’s the significance of 19b-4 filings?
They indicate regulatory readiness but don’t guarantee approval.
2. How might Ethereum’s price react post-verdict?
Volatility is likely; long-term trends depend on institutional uptake.
3. Are spot Ethereum ETFs as impactful as Bitcoin’s?
Yes, but Ethereum’s use cases (DeFi, smart contracts) add unique demand drivers.
Note: Trading carries risks. This analysis isn’t financial advice—assess your risk tolerance.