The Securities and Exchange Commission (SEC) is undergoing a significant shift, indicating a positive stance towards Ethereum spot exchange-traded funds (ETFs). Just a week ago, it seemed unlikely that giants like BlackRock and VanEck would receive approval for their ETF proposals that involve directly holding Ether. However, recent reports suggest that the SEC is now leaning towards endorsing these ETFs. Ethereum, with a market cap of $455 billion, is the second-largest cryptocurrency after Bitcoin and is set to become even more accessible to both everyday and institutional investors.
The change in the SEC’s perspective came when its personnel expressed their inclination to approve the ETFs. Detailed comments were issued on the pending applications, indicating that approvals could be granted as early as Thursday. This date also marks the deadline for the SEC to decide on the 19b-4 filing from VanEck and ARK/21Shares, which, if approved, would pave the way for the launch of their spot Ethereum ETFs. Other major players in the industry, including Grayscale Investments, Fidelity, BlackRock, and Franklin Resources, have similar deadlines next month.
According to reports, the SEC plans to coordinate the launch of multiple Ethereum ETFs simultaneously, similar to the approach taken with spot Bitcoin ETFs earlier this year. While ETFs that track Ether futures contracts have been approved in the past, none that hold the actual cryptocurrency have ever passed the SEC’s scrutiny.
Fidelity and Grayscale have made significant announcements regarding their ETF applications. Fidelity no longer stakes the Ether tokens underlying its ETF, while Grayscale has updated its 19-b4 filing. The Grayscale Ethereum Trust, which has operated as a closed-end fund, often traded at a discount compared to the value of the Ether it holds. With the potential ETF conversion, this discount could disappear, benefiting current investors.
The market has already reacted to the whisper of potential approval. Ether’s price surged 23% in just 24 hours, reaching $3,743 on Tuesday. The possibility of Ethereum ETFs also suggests a broader acceptance that could extend to smaller cryptocurrencies like Solana and Avalanche.
The trading chart above indicates a fluctuation pattern that shows strong buying interest at lower levels and profit-taking as it approaches higher resistance at around $3,840. The sharp movements and high trading volume indicate active trading. If Ether maintains support above the $3,720 level, it could make another attempt to break the $3,840 resistance in a few hours.