To The Moon

If you are into crypto you would have noticed that the crypto world is abuzz with the anticipated approval of Ethereum ETFs in May 2024. The expected date is 23 May 2024 which is two days away.

The U.S. Securities and Exchange Commission (SEC) is expected to approve several Ethereum exchange-traded funds (ETFs) by the end of May 2024. This approval could be a pivotal moment for Ethereum, driving institutional adoption and liquidity.

Financial institutions like Franklin Templeton and VanEck have submitted applications for these spot ETFs, mirroring the Bitcoin ETF approval process that led to a significant price surge for $CME Bitcoin - main 2405(BTCmain)$ .

Market is expecting a bullish run for $CME Ether - Jun 2024(ETH2406)$ if the ETF approvals go through. Ethereum’s price could rise nearly 70% from its current levels, potentially hitting $4,000 . This optimism is based on the precedent set by Bitcoin ETFs, which saw a notable increase in price upon approval.

One existing Ethereum ETF we could look at is $Grayscale Ethereum Trust (ETH)(ETHE)$

If we look at how this existing ETF is moving, it look like it is in a upside movement, we could see that there might be some selling pressure if Ethereum Spot ETF is approved on 23 May 2024. We could take advantage by taking a position in this ETF.

I foresee that there is potential of more upside.

The anticipated approval of Ethereum ETFs in May 2024 marks a critical juncture for Ethereum. This development, coupled with its technological advancements, positions Ethereum for substantial growth and institutional adoption.

US SEC Seeking Amended 19b-4 filings for spot Ethereum ETFs

Those filings, called Form 19b-4, are filed to inform the SEC about a proposed rule change and are among the documents that need the agency’s greenlight before spot ethereum ETFs can become effective. 

Firms looking to list and trade shares of spot ether exchange-traded funds are being asked by the U.S. Securities and Exchange Commission to update and refile documents that are pivotal if those products were to be approved, according to news reports.

Those filings, called Form 19b-4, are filed to let the SEC know about a proposed rule change and are among the documents that need the agency's greenlight before spot ether ETFs can become effective. 

The SEC's Trading and Markets Division told asset managers on Monday to amend their filings and refile them with amendments, The Wall Street Journal reported, citing people familiar with the matter. CoinDesk also reported that exchanges were being asked to update their 19b-4 filings on an "accelerated basis."

The outlook for a spot ether ETF has taken an optimistic turn. Bloomberg ETF analysts James Seyffart and Eric Balchunas now say that the chances of the SEC approving such a product have increased from 25% to 75%. 

When spot bitcoin ETFs were approved earlier this year, the SEC approved the 19b-4 forms, and then issuers' registration statements needed to become effective for trading to start. 

Ether Surge 10% After Odds Of Spot ETF Approval Increase

During the U.S. trading session on Monday (20 May 2024), we already see ETH at modestly higher, but there is a nice jump of more than 10% for the price of Ether (ETH).

This happen after two well-followed Bloomberg ETF analysts greatly upped their odds of the U.S. Securities and Exchange Commission approving spot ETH ETFs.

The SEC this week faces a number of final deadlines on the spot ETF approvals/denials after having delayed decisions on the funds a number of times.

Bitcoin (BTC) is adding to gains alongside ETH's advance, now higher by more than 5% and just shy of the $70,000 mark. Also on the move is the Grayscale Ethereum Trust (ETHE), a closed-end fund that Grayscale has proposed converting into a spot ETF.

It is recently been trading at more than a 20% discount to net asset value as investors bet against SEC approval, but is now higher by more than 23% on Monday (20 May 2024)

Summary

I personally feel that the approval of Ethereum Spot ETF would help to catalyst Bitcoin related stocks, especially the miners, I would be keeping a lookout for $Marathon Digital Holdings Inc(MARA)$

If we looked at how MARA has responded to the news of impending Ethereum Spot ETF approval, we could see that there have been an upside move, and if we want to take advantage of this event, we could watch how MARA is trading in terms of price action.

Appreciate if you could share your thoughts in the comment section whether you think Ethereum Spot ETF approval launch would favour the Bitcoin miners?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.