Spot Ethereum ETF approval odds have increased to 75% from 25%, according to Bloomberg ETF analysts. Several spot Ethereum ETFs are currently awaiting approval by the SEC. Bloomberg ETF analysts James Seyffart and Eric Balchunas previously gave the Spot ETH ETFs a 25% chance of approval, but now have upped their prediction to a 75% chance.

In a post to X (formerly Twitter), Eric Balchunas shared that he and Seyffart received inside information that there is chatter in the SEC that the regulator is changing their stance on the ETFs. The two analysts are awaiting filing updates to fine-tune their predicted odds, however, now everyone who previously thought the ETFs would be denied is “scrambling.” Seyffart also added in a post that we “should see a bunch of filings over coming days.”

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See…

— Eric Balchunas (@EricBalchunas) May 20, 2024

Also Read: Ripple Unveils Its Total XRP Holdings in Q1 Report

What Are Spot Ethereum ETFs?

Ethereum-based Exchange-Traded Funds (ETFs) are a type of investment fund that holds assets like stocks, commodities, or cryptocurrency. The ETFs trade on stock exchanges similar to stocks. In January 2024, the first cryptocurrency ETFs were approved for Bitcoin, the leading cryptocurrency by market cap. Shortly before and after that approval by the SEC, applications for Ethereum exchange-traded funds came flying in.

For the Ethereum ETFs to be approved, the SEC must approve both the 19b-4s (exchange rule changes) & S-1s (registration statements). Upon approval of both, all of the ETF applications will likely be approved at the same time, allowing the funds to go live. It took a significant amount of time for the US regulator to approve Bitcoin ETFs, and the same is expected for the Ethereum ETFs.


Also Read: Coinbase: Ethereum ETF Has 30%–40% Chance for Approval

The SEC could approve the 19b-4s & then slowly look over the S-1s to prolong the process of approval. However, the odds of approval are still increasing regardless of how long the process will take. The news is especially bullish for Ethereum which is up over 11% at press time in the last 24 hours to $3,413.17. Upon approval of the ETH ETFs, Ethereum may skyrocket similarly to Bitcoin upon BTC ETF approval in January.

Furthermore, the approval of Spot Ethereum ETFs may also generate more buzz in the overall cryptocurrency market. Having two crypto-based ETFs available on the stock market will be huge for crypto innovation and popularity amongst investors.


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