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Bitcoin and Ethereum fly due to optimism in the face of a new crypto engine: ETH ETFs

Bitcoin and Ethereum fly due to optimism in the face of a new crypto engine: ETH ETFs

It is relevant to mention that BTC spot ETFs, which began trading in January, have accumulated $12 billion in total inflows thanks to growing institutional interest, driving Bitcoin to all-time highs in March.

The market dand cryptocurrencies registers a notable rise that began in the previous round and extends to this day. Bitcoin (BTC) rises almost 7% in the last 24 hours, reaching a value greater than US$71,000, the highest level recorded in May and the highest since early April.

Altcoins are also showing significant bullish behavior. Binance Coin (BNB) increased its value by 7%, Solana (SOL) is up 2%, and both XRP and Toncoin (TON) are up 4%. Other cryptocurrencies such as Dogecoin (DOGE), Cardano (ADA) and Shiba Inu (SHIB) show increases between 6% and 9% in the last day. Avalanche (AVAX), meanwhile, has seen an impressive 13% rise.

However, the most notable increase has been that of Ethereum (ETH), which has experienced an increase of 18%, especially since ten o’clock on Monday night. This rally is attributed to Bloomberg’s expectations of a likely approval of ETH spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) during this month of May. Analysts Eric Balchunas and James Seyffart have raised the probability of this approval from 25% to 75%.

Ethereum ETF: What is known so far

However, the most notable increase has been that of Ethereum (ETH), which has experienced an increase of 18%, especially since ten o’clock on Monday night. This rally is attributed to Bloomberg’s expectations of a likely approval of ETH spot exchange-traded funds (ETFs) by the Securities and Exchange Commission. (SEC) during this month of May. Analysts Eric Balchunas and James Seyffart have raised the probability of this approval from 25% to 75%.

Balchunas explained on his account on the social network X (previously known as Twitter) that this 200% increase in probability is due to a possible change in the SEC’s position regarding its regulatory policy. Additionally, Nate Geraci, ETF expert and co-founder of the ETF Institute, has detailed that the SEC must approve both Form 19b-4 (for changes in exchange rules) and S-1 (registration statements) for them to be launched. ETFs, although it is possible that the 19b-4s will be approved first and then the S-1s will be delayed.

Ethereum.jpg

Courtesy: BeInCrypto

The SEC has a maximum period of 45 days, which may be extended by an additional 45 days, to approve or reject Forms 19b-4. May 23 is the deadline for the SEC to respond to VanEck about its ETH spot ETFalthough this period is likely to be extended. There is no legal deadline for approval of S-1 registration statements, so the process may be prolonged if the SEC requests more information.

It is relevant to mention that BTC spot ETFs, which began trading in January, have accumulated $12 billion in total inflows thanks to growing institutional interest, driving Bitcoin to all-time highs in March. The approval of ETH spot ETFs is expected to have a similar impact on the prices of the largest altcoin on the market.

This possible change in the SEC’s stance towards crypto assets could be the reason behind the recent price increase, although there are other important factors. Market optimism has improved in recent days due to the reduction in inflation in the United States, which could allow the Federal Reserve (Fed) to be less strict in its monetary policy, in contrast to market fears a few years ago. month.

The sudden increase in the value of Bitcoin and ETH has caused short liquidations totaling more than $260 million across the market, the most since February 28. ETH shorts lost more than $115 million, followed by Bitcoin shorts, with losses of just over $99 million, according to data from Coinglass.

Source: Ambito

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