SEC Allegedly Changes Its Mind As Ethereum ETF Looks Imminent

Bloomberg ETF analysts have made a surprising move, suddenly raising their odds for spot ETH ETF approval to a whopping 75% compared to the previous 25%. The rumours that the United States Securities and Exchange Commission may approve an Ethereum ETF has caused the crypto market to surge, with ETH recently crossing the $3,700 mark.

Most recently, the SEC has approved various forms for listing and trading spot Ethereum ETFs. It is worth mentioning that the agency still needs to approve the forms by the issuers before these products may be released.

Renewed Communication

Eric Balchunas, a senior Bloomberg ETF analyst, revealed that the SEC has unexpectedly changed its mind about rejecting spot ETH ETFs. This has led issuers to quickly finalize their applications before the first decision deadline on May 23rd.

It is worth mentioning that even though the Biden Administration has recently taken a strong anti-crypto stance, Balchunas believes the increasing political debates around crypto are behind this sudden shift. Earlier today, the market was pessimistic about Ethereum getting spot ETF approval, with Polymarket showing only an 11% chance. Now, the odds have shot up to over 50% for the first time since January, as the ETH/BTC ratio strengthens.

An Inevitability

Balchunas suggests political pressure made the SEC change its stance, but the approval of an Ethereum ETF has seemed inevitable for a while now. Various experts had noted that the lack of meaningful communication between the SEC and issuers was a bad sign, suggesting denial. However, when the SEC approved commodity futures-based ETH ETF products last October, it likely decided then that Ether was not a security.

With renewed confidence by the experts, the crypto community is now widely expecting ETH ETF approval to happen this Thursday. Still, as is so often the case with the crypto industry, anything could happen in the blink of an eye, and traders are being urged to think carefully before making any big decisions regarding their investments.