ETH climbs as traders bet on approval of a spot Ethereum ETF

The Ethereum price (ETH) increased by more than 15% and exceeded 3600 dollars following a report indicating that SEC from United States is currently discussing with spot ETF issuers on the dauphine from market.

This Tuesday morning, Ethereum (ETH) is trading at around $3,650, up 16% over the last 24 hours.

The rally on the crypto market runner-up comes as sources close to the matter reported yesterday that US regulator Securities and Exchange Commission had contacted at least one exchange and one potential issuer of spot exchange-traded funds on ether to update their associated 19b-4 filings before Thursday, a key deadline for applicants.

19b-4s filings are submitted to the SEC by exchanges when they wish to change rules or introduce new products. In the case of Ethereum spot ETFs, exchanges need SEC approval for these filings.

Following the SEC’s request, the chances of an Ethereum spot fund being approved by May 23 have risen from 25% to 75%, according to ETF experts Eric Balchunas and James Seyffart.

James Seyffart I increase our chances of Ether ETF cash approval to 75% (up from 25%), hearing talk this afternoon that the SEC might do a 180 on this (increasingly political issue), now everyone is scrambling (like us, everyone thought they would be denied),” Balchunas wrote last night on X.

Before a first cash ETF on ether is listed, however, potential issuers must also get their S-1s approved. S-1 forms are required for new securities offered to the public and provide the SEC and potential investors with detailed information about the company’s business operations, financial condition and management.

We also need S-1 approvals. It could be weeks, even months, before we see S-1 approvals and thus a live Eth ETF,” said Seyffart.

The US SEC gave the green light for the first spot ETFs on Bitcoin last January, propelling the crypto’s price to new heights earlier this year. Funds on BTC have attracted more than $50 billion since their launch.

Several TradFi giants, including BlackRock and Fidelity, are now in the running to offer a spot ETF on Ethereum. According to Bloombergsome companies were expecting a rejection, as discussions with the SEC were faltering compared to those for the launch of funds on the market’s first crypto.

Over the past 24 hours, the Bitcoin (BTC) price has simultaneously surpassed the key $70,000 level, up 6% over 24 hours.

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