Applications for Ethereum ETF now have a 75% probability of success, Bloomberg analysts say – DiarioBitcoin

Eric Balchunas and James Seyffart consider that the chances of approval for an ETF Ethereum in cash went from 25% to 75% in the last hours, this after certain reports about a possible change in the perspective of the SEC regarding these products.

***

• Probability of success for ETF applications Ethereum rises to 75%
• The analysts of Bloomberg They consider that there are very positive signs at this time
• Apparently, due to political issues, the SEC would be considering making its position on these products more flexible
• However, it remains to be seen if it approves the respective forms for the arrival of these products on the market.
• Until these reports, the chances of success were barely around 25%.

In what may seem like an unexpected turn for many, analysts at Bloomberg appear to have changed their minds regarding applications for an exchange-traded fund (ETF) based on Ethereum in cash, and now they consider that these are much more likely to be approved despite the fact that weeks ago they anticipated a possible rejection of said products.

Approval chances at 75%

This new reading was shared a few minutes ago by the senior ETF’s analyst for Bloomberg, Eric Balchunas, who due to a series of recent events anticipates that the requests for Ethereum ETF cash They now have a 75% chance of being approved in this first round.

In this regard, Balchunas wrote in his X account (Twitter) the next:

Update: @JSeyff (James Seyffart) and I are raising our Ethereum ETF spot approval odds to 75% (up from 25%), and this afternoon we heard rumors that the SEC might be doing a 180 on this (increasingly political) issue. , so now everyone is hesitant (just like us, everyone else assumed they would be denied).

To better explain his point, Balchunas referenced a tweet previously posted by the president of ETF StoreNate Geraci, who sees it as quite likely that the US Securities and Exchange Commission (SEC), approve the forms 19b-4 (changes in exchange rules) presented by the applicants, and subsequently, after delaying the process as much as possible, proceed with the forms S-1 (registration statements) that would already register these products officers.

Just like Balchunas, the other analyst of Bloomberg, James Seyffart also posted a message on his X account (Twitter) where he indicated:

The dilemma with ETFs Ethereum cash

The new reading of the analysts of Bloomberg comes to the place with very few days remaining until the SEC must give a definitive response to the first batch of ETF applications Ethereum in cash, which expire the official period at the end of this month.

This new reading is quite surprising, since the enthusiasm for ETFs Ethereum had declined significantly due to a series of events that apparently work against this product.

First of all, the recent actions by the SEC stand out, which, although it has not openly said that Ethereum qualify as a value, this has not prevented it from carrying out research for months to prove this premise. Reports published weeks ago suggest that the regulator could be behind the process against the Ethereum Foundation, since he has been interrogating people and entities associated with said institution.

Recently revealed internal documents put on the table that the SEC already cataloged Ethereum as a security from 2023. This is especially relevant given that both the agency and its president, Gary Gensler, have been cautious in answering questions about the applicable classification for the digital currency, avoiding pointing it out as a security in public statements. Although this revelation led to a public accusation by the president of the US House of Representatives Financial Services CommitteePatrick McHenry, who accused the agency and its director of deliberately lying about the issue.

Although the main managers of VanEck and CoinShares They indicated that they were not very optimistic about a positive response for ETFs Ethereum, recently an analyst Coinbase He pointed in the opposite direction, and assured that many people were probably underestimating the possible approval of these products.

Although there are only a few days left for the SEC speak out in relation to ETFs Ethereum In cash, Balchunas assured that his expectations are around 75% because we still have to wait for some type of official update regarding the issue.

As to Ethereum, this announcement and the bull run seen in the price of Bitcoin seem to have had a very positive effect on its price. At this time said digital currency It is over USD $3,150 per unit, which translates into an increase of 11% in the last 24 hours.

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, under free use license

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.