Spot Ethereum ETF: Is The Current Silence Early Sign Of Denial?

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As an experienced analyst, I have followed the development of various ETF applications in the digital currency space closely. Based on my observations and understanding of regulatory processes, the silence from the SEC regarding VanEck’s spot Ethereum ETF application is not uncommon. The delay could be due to a variety of reasons, including internal deliberations within the SEC or unresolved issues with the applicant.

The digital currency market is currently in a holding pattern, with anticipation mounting for the SEC’s verdict on VanEck’s proposed Ethereum spot ETF. The SEC is anticipated to release its response today, and the lack of communication so far has fueled pessimistic speculation among investors.

Will SEC Deny Spot Ethereum ETF?

Up until now, Bloomberg ETF analysts Eric Balchunas and James Seyffart have held an optimistic view regarding the possibility of approval. However, in a recent update, Balchunas mentioned that there’s been no definitive news to hang onto yet. Surprisingly, two individuals from X have reportedly disclosed that their applications were rejected.

In the absence of comments from the SEC and the two news outlets about their sources, it can be challenging to make an accurate prediction. Nevertheless, Balchunas offered his perspective on the situation. He explained that the delay was not unexpected because the Trading & Markets Division at the SEC received notice of the proposed approvals very late in the process.

At present, there’s no new information to share. We’re still waiting for an update and haven’t received any confirmation regarding potential delays tonight from reliable sources. For now, that’s the extent of our knowledge on the matter. @JSeyff

— Eric Balchunas (@EricBalchunas) May 23, 2024

The Bloomberg ETF Analyst speculates that the Securities and Exchange Commission (SEC) may have drafted rejection letters for VanEck’s ETF proposal. If true, securing approval could be a lengthy process.

In the world of digital currencies, particularly among crypto enthusiasts on X, there’s an immense amount of excitement and anticipation. Given this heightened expectation, it’s crucial for proper management. To calm the fervor, Balchunas shared that all indications from Bloomberg suggest the Ethereum spot ETF will receive approval.

Crypto Market Response

The ongoing debate in the crypto world about potential Ethereum ETF approvals has resulted in increased volatility, with Bitcoin (BTC) experiencing a 2.34% decline to $67,770 as part of this broader market shift.

Ethereum continues to experience the growth it previously registered, with its value presently increasing by 2.89% to reach $3,873.74. However, this figure is lower than its peak of $3,943.55 attained within the last 24 hours. As Ethereum dominates the cryptocurrency scene currently, it remains intriguing to observe how its price will respond to any forthcoming regulatory decisions from the SEC.

If approved, the coin’s price could reach its record high of $4,891.70 once more. Conversely, a disapproval from VanEck could halt its progression and potentially trigger a decline toward the $3,000 support level.

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2024-05-24 00:22