Unexpected Approval of Ether ETF by SEC Could Surprise Crypto Community, Analysts Say
Summary:
Despite skepticism from the crypto community about the approval of an Ether (ETH) exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), some analysts hint at a possible surprise outcome. Even though majority expect a denial, this has already been factored into the crypto market's price, as per Matthew Hyland, a crypto trader. Bloomberg ETF analyst, Eric Balchunas, predicts a 35% approval chance, contrasting the crypto community's 7% estimate. David Han of Coinbase suggests the likelihood of a surprise approval, particularly as the U.S. elections approach and cryptocurrencies become a significant election issue.
Even though many crypto experts and the greater crypto community have expressed skepticism about the potential approval of an Ether (ETH) exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), certain analysts are hinting at a possible surprise outcome. Matthew Hyland, a crypto trader, indicated in a May 17 post that the approval of the ETF might catch many off guard. He raised questions about who would sell if the majority of individuals were expecting ETH ETF denial and anticipating a subsequent crypto crash. Hyland then expressed that the projected denial has already been factored into the crypto market's price. At the time the news was published, the value of Ether stood at $3,102 according to data from CoinMarketCap. Ether's trade value has increased 6.31% over the last week. Bloomberg ETF analyst Eric Balchunas estimates a 35% chance of approval, contrasting the crypto community's lower 7% estimate, as stated by the New York-based crypto prediction platform, Polymarket. David Han, an institutional research analyst at cryptocurrency exchange Coinbase, has suggested the possibility of a surprise positive outcome. In a monthly outlook report released on May 15th by Coinbase, Han puts the approval odds closer to 30-40%. Han speculates that as cryptocurrencies increasingly become a significant election issue leading up to the November US elections, the SEC might reconsider maintaining its denial stance. Han also indicated that even if the ETF applications from VanEck and Ark Invest get turned down by May 23, there is a good chance that a lawsuit could reverse this initial decision.
Published At
5/18/2024 10:40:07 AM
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