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A surge of enthusiasm permeates cryptocurrency markets as hopes for the approval of exchange-traded funds (ETFs) directly investing in Ether soar, signaling a notable shift in sentiment.
The positive outlook coincides with a flurry of developments involving potential ETF issuers, stock exchanges facilitating their trading, and the US Securities and Exchange Commission (SEC). Sources familiar with the matter revealed that the SEC requested updates to rule change filings from the New York Stock Exchange and Cboe Global Markets, indicating a potential uptick in the likelihood of approval. However, the outcome remains uncertain, underscoring the complexities involved.
Fidelity Investments recently amended its S-1 registration statement with the SEC for its proposed spot-Ether ETF, addressing key concerns such as staking and derivative investments. This move precedes a looming May 23 deadline for the SEC to review VanEck’s ETF application, adding to the anticipation.
Analysts view potential ETF approval as a significant regulatory milestone, with expectations of substantial inflows into Ether upon implementation, akin to the impact observed with Bitcoin ETFs. Geoff Kendrick of Standard Chartered estimates inflows ranging from $15 billion to $45 billion within the first year post-approval.
The Grayscale Ethereum Trust (ETHE) serves as another barometer of market sentiment, with its discount to underlying Ether holdings narrowing significantly, reminiscent of patterns observed before the approval of Grayscale’s Bitcoin Trust conversion.
Ether’s recent price surge, coupled with heightened probabilities of ETF approval, reflects growing optimism among investors. While the SEC refrains from commenting on specific filings, stakeholders eagerly await developments in this evolving landscape.
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