ethereum (eth) Price has not achieved any significant rally following the approval of the Securities and Exchange Commission (SEC) of the ethereum/ethereum-spot-etfs-approval-skepticism-persists-as-eth-recovers/” rel=”nofollow noopener” target=”_blank”>ethereum Spot ETF. This is certainly surprising, given that the approval was expected to trigger a massive price surge for the second-largest crypto token.
Why the price of eth has failed to recover
The price of ethereum may have failed to recover because the crypto token was already included in the news about a possible approval. It is worth noting that the price of eth ethereum/ethereum-price-up-20-today/#:~:text=The%20Ethereum%20price%20has%20risen,of%20the%20Spot%20Ethereum%20ETFs.” rel=”nofollow noopener” target=”_blank”>recovered almost 20% earlier this week when Bloomberg analysts Eric Balchunas and James Seyffart increased his chances of approval from 25% to 75%, suggesting that approval was almost likely.
Therefore, this could have turned out to be a typical 'sell the news' event, and many traders are currently making profits from their previous eth investments. NewsBTC reported that ethereum whales had purchased more than 110,000 eth ($341 million) between May 19 and 20, while positioning themselves ahead of any news about a possible approval of these funds.
Meanwhile, historically speaking, this could have been expected from the price of eth, considering that bitcoin (btc) saw a significant drop after the approval of bitcoin Spot ETFs.
However, it is worth mentioning that unlike bitcoin ETFs, which began trading immediately, these ethereum Spot ETFs will not start operating still. The SEC only approved exchange filings (19b-4) and will still need to approve registration filings (S-1) for these funds to begin trading.
The fact that these ethereum ETFs have not started trading yet could be another reason why the eth price has not reacted positively to this development. As such, approval of registration applications, which may take weeks or months, may be necessary to trigger another spike for ethereum and other altcoins by extension.
A key positive is that eth is up over 28% in the last seven days, which is a big deal considering the crypto token has lagged for a while and has failed to catch up with other large-cap crypto tokens. .
Another reason to be bullish on ethereum
The approval of ethereum Spot ETFs is a clear indication that the SEC does not consider eth a valueunlike before ethereum-was-security-for-at-least-year#:~:text=According%20to%20the%20new%20filing,buying%20and%20selling%20of%20the” rel=”nofollow noopener” target=”_blank”>reports that the Commission could have held this belief for some time.
TuongVy Le, General Counsel of Anchorage Digitalmarked with an x (formerly twitter) x.com/TuongvyLe12/status/1793756308610441261″ rel=”nofollow” target=”_blank”>mail that funds whose assets are 40% or more securities may not be registered through a Form S-1 but through Form N-1A or N-2.
Therefore, if the SEC were to consider eth a security, it would have rejected the S-1 filings made by the various fund issuers such as Black Rock since these ethereum ETF They will keep eth as their main assets.
At the time of writing, eth is trading at around $3,803, according to ethereum/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
