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Fox Business journalist Eleanor Terrett said on Thursday that the US Securities and Exchange Commission (SEC) started talks with Ethereum exchange-traded fund (ETF) issuers regarding their S-1 registration forms. She cited sources who said there is still work to do on those forms.

This could be seen as a positive development, but it suggests there might have been a previous delay in communication.

In a separate post, Terrett indicated the SEC might approve the 19b-4 filings today, followed by collaboration with issuers on S-1 forms in the coming weeks or months.

Commenting on Terretts post, Bloomberg ETF analyst James Seyffart said with significant effort, S-1 applications for spot Ethereum ETFs could be resolved within a few weeks. However, he noted that the SEC may need additional time to complete the S-1 review process.

I think that if they work extremely hard it can be done within a couple weeks but there are plenty of examples of this process taking 3+ months historically, Seyffart suggested.

Most ETF issuers, including major players like Fidelity, Bitwise, Grayscale, VanEck, Ark 21Shares, Franklin Templeton, and Invesco, submitted their amended 19b-4 filings earlier this week. Nasdaq also refiled BlackRocks proposed Ethereum ETF yesterday.

The clock ticks down as the market braces for the SECs verdict on spot Ethereum funds.

Bloomberg analyst Eric Balchunas suggests a timeframe of around 4:00 PM ET for the SECs announcement on the fate of these ETFs. The decision on spot Bitcoin ETFs previously arrived slightly earlier on the designated date.

Meanwhile, Ethereums price has surged 25% over the past seven days, trading at nearly $3,800 at press time, according to CoinGeckos data.

Experts expect that a potential spot Ethereum ETF approval could trigger a sharp price increase. However, whether Ethereum can replicate Bitcoins price action after the spot fund approval remains uncertain.

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefings own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

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SEC engages with Ethereum ETF issuers on S-1 forms - Crypto Briefing

The price of Ether surged 25% between May 20 and May 21, reaching a nine-week high of $3,840. However, the altcoin encountered resistance despite growing confidence in the approval of a United States-based spot Ether exchange-traded fund (ETF) by the May 23 deadline. This is when regulators will decide on the application from asset manager VanEck. Traders are now pondering whether the stabilization of around $3,750 suggests that the Ether ETF approval has already been factored into the price.

Analysts have increased their approval expectations after the U.S. Securities and Exchange Commission (SEC) reportedly reached out to the New York Stock Exchange and the Nasdaq to update their 19b-4 filings for the proposed spot Ether (ETH)ETFs. Crypto lawyer Jake Chervinsky pointed out that this sudden interest from the regulator likely stems from political motives, as U.S. President Joe Biden may wish to appeal to cryptocurrency supporters.

However, there is still no official word from the SEC, which plans to vote on the issue with a panel of five commissioners. Two of them are notably pro-crypto: Hester Peirce and Mark Uyeda. On the other hand, Caroline Crenshaw is known as the SECs most vocal critic of the cryptocurrency sector, especially for its inadequate regulation and the risk of fraud and manipulation.

Investors may assess the potential impact on Ethers price based on Bitcoins (BTC) trajectory following its U.S. spot ETF approval in January. Bitcoin saw a 35% increase in the 50 days after the approval, climbing from $46,356 to $62,416 by March 1. Its uncertain whether the demand for Ether ETFs will reach the $7.37 billion of inflows that Bitcoin experienced in its first 50 days, especially given Grayscales $28.7 billion Grayscale Bitcoin Trust ETF.

Considering analysts give a 75% probability of spot Ether ETFs being approved, the recent 25% increase in ETH price aligns with Bitcoins trend post-ETF approval. This doesnt mean Ethers price is limited to $3,840, but it suggests that the approval likelihood aligns with market expectations. Similarly, Bitcoins rally didnt stop at a 35% gain, as it reached a new all-time high of $73,750 two weeks later. However, as time passes from events like this, external factors increasingly influence the market.

For instance, the S&P 500 index hit a record high on March 12, and WTI prices finally broke above $80 on March 14 after four months. Bitcoins U.S. spot ETF approval coincided with a particularly favorable period for risk-on assets. While its uncertain what Bitcoins performance would have been under different market conditions, assuming a similar trajectory for Ether would be simplistic.

Related: Strong Bitcoin ETF inflows boost BTC stability, says Bitfinex

To gauge how professional traders are positioned, its useful to examine the Ether futures market. Normally, ETH futures should exhibit an annualized premium of 5% to 10%, a market condition known as contango, which is typical in financial markets.

Data suggests that before May 20, major investors and market makers were not confident in Ethers performance, at least not enough to justify an annualized premium of over 10% for a leveraged long position. The jump to a 15% premium shows a moderate risk appetite among bulls, but this is still far from the 20% to 27% range seen in March.

The metrics from derivatives suggest that Ether traders are not excessively optimistic or fully pricing in the approval odds of the U.S. spot Ether ETF. For ETH bears, this greatly reduces the potential negative impact of a denial, as there is no excessive leverage use among buyers. Ultimately, Ethers current price does not reflect full anticipation of approval, indicating potential for further gains.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Ethereum rally stalls at $3.8K Is SEC ETH ETF decision already priced in? - Cointelegraph

The U.S. crypto industry has complained loudly about a lack of regulatory clarity, but one firm sees it differently. Digital assets platform Prometheum has taken the contrarian view that a clear legal path already exists to trade cryptoa stance that has drawn the ire of others in the industry.

On Friday, the New Yorkbased company put its theory to the test by launching its long-planned custody services for Ethereum. The move is notable because Prometheum is doing so in a way that classifies the token as a security under the supervision of the Securities and Exchange Commission. The custody launch appears to validate the position of agency chair Gary Gensler, who has countered the broader crypto industrys position by saying the existing regulatory regime is adequate and effective.

It eliminates a lot of the arguments that things cant be done under existing laws, said Aaron Kaplan, the co-CEO of Prometheum Inc., the parent company of the entity launching Ether custody. It marks the first time thatan investment contract digital asset security is being custodied and treated under the securities laws.

Founded by the brothers Aaron and Benjamin Kaplan, Prometheum existed in relative obscurity before bursting onto the crypto scene in mid-2023 with the announcement that it had procured a first-of-its-kind broker-dealer license that would allow firms to custody digital asset securities.

While much of the blockchain industry argues that the vast majority of cryptocurrencies should not be treated as securities under the jurisdiction of the SEC, Prometheum made a novel alternate claim. It argued that its special-purpose broker-dealer distinctionalong with a license for a separate entity to operate an alternative trading platformwould allow it to offer trading for cryptocurrencies under existing SEC regulations.

Prometheums wager, along with a contentious appearance by Aaron Kaplan at a House Financial Services Committee hearing on digital assets, drew withering critique from industry leaders, who argued that Prometheums approach would not work, and that it would not be able to launch products or find customers.

For months, Prometheum declined to name which crypto assets it would treat as securities and offer on its platforms, until February, when it announced that it would soon make Ethereum available for custody. While the launch does not constitute its full trading offering, custody is a necessary first step to facilitating trading, as customers need to have a venue to hold the assets they buy and sell. By operating both the custodian and the trading system under separate entities with approval from the SEC and the Financial Industry Regulatory Authority (FINRA), an independent industry oversight body, Prometheum claimed it had found a compliant path where competitors like Coinbase had failed.

Again, the announcement was met with vitriol, with crypto advocates fearful that the launch would mean the SEC viewed Ether as a securitya position the agency has not yet made, but has repeatedly telegraphed, and that would have far-reaching consequences for the sector. Those worries were exacerbated when the SEC issued a Wells notice against the Ethereum developer Consensys in late April that seemed to confirm the industrys fears.

Prometheums launch of Ether custody services, however, was delayed beyond its target of Marchuntil Friday. Kaplan told Fortune that Prometheum Inc., the subsidiary of Prometheum that holds the broker-dealer license, soft-launched the product with a small group of companies and planned to fully launch custody services by the first week of June. Full trading, he said, would come within a quarter. He declined to provide further details on the companies included in the pilot.

After months of threatening to upend the crypto industrys long-held belief about the possibility of trading Ether under SEC guidance, Prometheums custody launch represents the first test of the companys strategy.

It took a little longer than we anticipated, said Kaplan. But we didnt really have the option of doing it a different way.

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Controversial blockchain firm Prometheum launches long-awaited Ethereum custody - Fortune

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Tomorrow is the final deadline for the approval of VanEcks spot Ethereum exchange-traded fund (ETF) in the US, and expectations are high. Bloomberg ETF analyst James Seyffart shared that an approval movement is happening, despite regulatory indicators pointing out to the contrary direction until Monday.

As a result, Ethereum (ETH) leaped up to 21% in less than 48 hours and stood just 22% from its all-time high of $4,878.26, according to data aggregator CoinGecko. Bitcoin (BTC) leaped 96% in two months before the approval of the first spot Bitcoin ETFs in the US and reached its all-time high two months later.

James Davies, co-founder and CPO at Crypto Valley Exchange, highlights that Bitcoins case was different. In that instance, though, everything came together ETFs, bitcoin halving, and global inflation easing significantly and lined up to drive Bitcoin. Ethereum has already had the crypto cycle and global market sentiment increase, he shares.

Although Davies sees Ethereum ETF inflows having a substantial impact, propelling ETH to new all-time highs, it may be hard for Ethereum to replicate BTCs movement after the funds approval. It does, however, present a great steady growth story for the rest of 2024.

Ruslan Lienkha, chief of markets at YouHodler, also shares the view that an Ethereum ETF might trigger a sharp ETH price increase. Moreover, this movement might not be fully priced, with significant upside yet to be seen. If so, it will be a powerful impetus for the whole crypto market and a stimulus for other coins growth, added Lienkha.

Bitfinexs analysts believe that a spot Ethereum ETF approval could play out just like the spot Bitcoin ETF approval, which was a sell-the-news event before a long-term bullish outlook was triggered, causing a multi-month rally. As for inflows, they expect a similar level compatible with ETHs market cap.

The current move from sub $3000 to $3800 is a result of the market pricing in the higher odds of an ETF approval. It is important that market participants often front-run and price in odds as absolute implying that 75% odds of approval by Bloomberg analysts could potentially be priced in as 100%.

Marko Jurina CEO at Jumper.Exchange, pointed out that BTC rose nearly 65% following the trading of spot Bitcoin ETFs in the US. Thus, a similar movement would propel ETH well beyond its previous all-time high. Zentner also believes that the approval might trigger a crypto market growth for the second half of 2024.

Despite the optimism regarding the Ethereum ETF approval, there is still a slight chance of rejection. Moreover, as highlighted by Seyffart, a good part of investors are misunderstanding the current movement since approval doesnt translate to immediate trading. Both of these scenarios might then upset investors.

Nevertheless, in the light of recent developments, those events are now being priced out, says James Davies, from Crypto Valley Exchange. On the other hand, Jumper.Exchanges Marko Jurina believes that both negative possible events are already priced in.

When the spot BTC ETFs first came to market, there was actually a brief sell-off where some took profits before the rally resumed. Additionally, given the volatile nature of the market, good and bad news gives ample opportunity for market makers to create more violent price swings, so blood on the streets is definitely possible. More problematic for the ETH community (if no approval) would be the loss of a narrative as a catalyst, Jurina added.

Moreover, a slight drop followed by a consolidation period is also a possibility, shares Ruslan Lienkha from YouHodler. Ethereum ETF approval is just a matter of time. The SEC will approve it sooner or later after the status clarification of ETH, and it matters little if it is recognized as a commodity, security, or something else. As for now, fundamentally, nothing will change for ETH. It will remain the second crypto in the industry even without ETFs.

Even if an unlikely rejection happens, Bitfinex analysts describe a layered scenario, which could end in a hard rejection or a soft rejection. A hard rejection would include ETH being considered a security, while a soft rejection would be limited to ETF proposals.

The former could be very bearish leading to a retrace of the entire move up currently. The latter could lead to more speculation continuing over a future approval on re-appeal, Bitfinex analysts concluded.

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefings own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Read the original here:

Experts speak out on how high Ethereum could go with an ETF approval - Crypto Briefing