SEC's Potential U-Turn Sparks Hopes for Spot Ether ETFs, Bitcoin Poised for Major Rally
Summary:
The Securities and Exchange Commission might approve an ETF for Ether following a potential policy reversal, causing Ether's value to rise by 19.4% in a single day. The New York Attorney General reached a $2 billion settlement with Genesis, a crypto firm accused of tricking investors. Bitcoin could surge to new highs if it surpasses a crucial $67,500 resistance, according to researcher Markus Thielen. A significant decision about spot Ether (ETH) ETFs is imminent, with SEC Chair Gensler's vote potentially being the turning point.
Hopes are rising for the approval of an exchange-traded fund (ETF) for Ether (ETH) following rumours the Securities and Exchange Commission made an abrupt directional change regarding spot Ether ETFs. This sudden pivot, suspected to be due to political influences, has led to requests for ETF exchanges to revise their 19b-4 filings. These speculations have resulted in a 19.4% increase in Ether's price in the last day, reaching $3,685, the highest since April 9.
Genesis, a cryptocurrency firm, has agreed to a settlement worth $2 billion with Letitia James, the New York Attorney General. James announced on May 20 that a bankruptcy court had sanctioned the settlement. Proceeds from the settlement will be returned to Genesis investors, and Genesis will face restrictions on operating within New York. Allegations underlining this lawsuit claimed that Genesis had defrauded investors who had contributed $1.1 billion through the Genesis Earn scheme.
"Throughout this process, our main aim has been to maximise value for every creditor, and we are pleased with the court’s approval of our [bankruptcy plan] and the settlement reached with the NYAG," said Derar Islim, Genesis’ interim CEO.
Bitcoin may experience a significant price surge if it can overcome the key resistance level of $67,500, according to Markus Thielen, a researcher. Thielen's report on May 20 suggests that breaking past this significant price barrier could propel Bitcoin to new record high prices.
The future of spot Ether (ETH) ETFs will be decided this week through a decisive vote from SEC Chair Gensler. Previous spot Bitcoin ETFs approval in January was given by a five-commissioner panel. A similar panel, including two pro-crypto Commissioners, Hester Pierce and Mark Uyeda, will be faced with the decision to approve or deny VanEck's spot Ether ETF on May 23.
Additional input by Geraint Price, Sam Bourgi and Felix Ng.
Published At
5/21/2024 9:34:48 AM
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