Ether Jumps ~20% on Speculation of ETH Spot ETFs Potential Approval

Ethereum received a ~20% boost yesterday amid some media reports suggesting the imminent approval of Ethereum (Ether/ETH) spot ETFs by the US Securities and Exchange Commission (SEC).

Ether - the second largest cryptocurrency by market cap (~$438.8 billion) is now approaching the key psychological level of $4000.

This was the steepest rise for ETH since November 2022.
 

Prior to yesterday, the odds of ETH spot ETFs being approved were minimal at around 25%.

The change in market sentiment regarding the future of the applications came as the SEC asked some participants to update their related 19b-4 filings, a required paperwork that all applicants are required to complete during the decision process.

This news alone has had a significant impact on the market's view of the potential for approval, with Bloomberg now suggesting a 75% chance of success.

With the first deadlines for some applications approaching as early as this week, this "update request" could potentially be a positive sign as it could give the SEC additional time to make a final decision.
 

What to Expect?

ETH Spot ETFs, if approved, will be a second recent major milestone for the crypto industry as a whole.

The first was the approval of Bitcoin spot ETFs earlier this year.

As in the case of the BTC spot ETFs, the introduction of these instruments could

• Make ETH investments more accessible to the general public
   
• Attract more institutional money
   
• Improve liquidity, which may lead to greater price stability
   

In the long term, it may gradually increase demand and have a positive impact on price movements.

In the short term, approval could potentially trigger a sell-off as some investors may want to cash in on the event.