Ethereum bulls await ETF approval as BlackRock, Bitwise, Grayscale submit amended ETH ETF filings

Source Fxstreet
May 22, 2024 19:39
  • BlackRock, Bitwise and Grayscale join fellow issuers in submitting amended spot ETH ETF 19b-4s filings on Wednesday.
  • SEC has begun discussions on S-1s filings as they may be delayed by a few weeks before approval.
  • Ethereum bulls appear to be conserving strength for next leg up as they await SEC approval.

Ethereum (ETH) is trading sideways on Wednesday as BlackRock, Bitwise and Grayscale submitted their amended 19b-4s filings to the Securities & Exchange Commission (SEC). The agency has also begun conversations with issuers on S-1s applications.

Also read: Ethereum continues to rally as five potential spot ETH ETF issuers have already submitted amended filings

Daily digest market movers: Nearly all issuers have submitted amended filings

Ethereum is trending heavily across the crypto community as the SEC's deadline to comment on Van Eck’s spot Ethereum ETF application is less than 24 hours away.

BlackRock and Bitwise filed amendments for their spot Ethereum ETF 19b-4s on Wednesday. Hashdex is the only issuer yet to submit an amendment to its Ethereum ETF 19-b-4s. Grayscale also submitted amended 19b-4s filings for its Ethereum Mini Trust and Ethereum Trust after its initial filings on Tuesday.

The total number of issuers that have submitted amended 19b-4s filings include: BlackRock, Bitwise, Grayscale, Van Eck, Ark 21Shares, Fidelity, Franklin and Invesco.

The 19b-4s filings are what national exchanges like the NASDAQ or the New York Stock Exchange (NYSE) submit to the SEC to seek approval for listing new products on their trading platforms. In the context of ETFs, S-1s refer to the initial registration forms detailing how a fund would be managed and track the underlying asset's price.

With Hashdex’s filing left, the market has begun the countdown for the SEC's decision.

Read more: Ethereum sees a 16% spike as Bloomberg analysts surprisingly increase approval odds to 75%

While most of the recent updates have been on 19b-4s, Fox Business’ Eleanor Terret said SEC staff have now begun conversations with issuers on their S-1s, "with the conclusion being that there's work to do" on those.

Bloomberg analyst James Seyffart mentioned earlier that the approval of 19b-4s filings is only a part of the required approvals from the SEC, as the agency would also have to approve S-1 filings before spot ETH ETFs can launch. Seyffart suggested that while S-1 approval is a matter of “when” and not “if,” it may take days to weeks before the SEC approves them.

Considering the SEC's recent subpoenas to Ethereum-related firms and earlier silence on the ETFs, many have suggested that their 180 turn is political. Seyffart said the agency's recent change of mind may have been a decision from above, possibly US President Joe Biden.

The SEC approving spot ETH ETFs "will be one of the biggest regulatory 180s in recent SEC history and proof that the crypto crowd is a legitimate voting block, securities lawyers tell me," says Fox Business Charles Gasparino.

ETH technical analysis: Ethereum bulls await ETF approval

Ethereum traded around $3,737 on Wednesday as bulls appear to be conserving strength for a potential SEC spot ETH ETF approval on Thursday.

The $3,618 level serves as a support in case of a short-term downward move. ETH liquidation data also confirms that bulls may be slowing down, with over $28 million in long liquidations out of a total of $49.96 million worth of liquidations.

Also read: Week Ahead: Ethereum and DeFi to come under spotlight this week

If the SEC approves the spot ETH ETFs on Thursday, Ethereum may skyrocket over 30% to set a new all-time high above $4,878.

This aligns with predictions from Consensys CEO Joseph Lubin, who said ETH could see much higher prices if the ETFs are approved as there would be less supply to meet demand. Bernstein analysts have also predicted that Ethereum may see a 75% surge to $6,600, similar to Bitcoin's 75% surge after its ETF approval.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.

Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.

Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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