KEY POINTS
- Among the applying issuers who updated filings was VanEck, which is expecting an SEC decision Thursday
- A Bloomberg analyst said the sudden 180-degree turn by the SEC was a "shock" moment even for insiders
- Ether whales have moved a staggering $400 million in ETH in the last 12 hours
At least five spot Ethereum (ETH) exchange traded-fund (ETF) applicants have amended their 19b-4 applications Tuesday, after the U.S. Securities and Exchange (SEC) issued comments to the funds' applicants.
Bloomberg ETF analyst James Seyffart revealed the news on X (formerly Twitter), posting screenshots of the amended filings of multinational financial services company Fidelity, global investment firm VanEck, digital asset and blockchain firm Galaxy, ARK/21Shares, and investment firm Franklin Templeton. The amended filings were submitted through the Chicago Board Options Exchange (CBOE).
UPDATE: It's happening. We have at least 5 of the potential #Ethereum ETF issuers that have submitted their Amended 19b-4's in the last ~25 min.
— James Seyffart (@JSeyff) May 21, 2024
Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, & Franklin all submitted via CBOE. pic.twitter.com/pHGt8iRWi8
"It's happening," Seyffart said, referring to the reported positive progress on talks between the SEC and applying issuers regarding the much-awaited approval of spot ETH ETFs.
Seyffart and another Bloomberg senior ETF analyst, Eric Balchunas, previously increased their expectancy of the funds' approval from a low 25% to 75%. Balchunas attributed the revised expectation to the sudden transition in the Wall Street regulator's actions leading up to Monday, when reports revealed that the SEC asked exchanges to update their 19b-4 filings. "This was a shock, a 'holy s***' moment yesterday even for ppl inside the process," he pointed out.
For anyone wondering why our odds were low up until yesterday, see below. This was a shock, a "holy sht" moment yesterday even for ppl inside the process. That said, props to @JSeyff for convincing me to stick with a 25% floor (as I wanted to go lower that's how deafening the… https://t.co/d9Xjt3nurN
— Eric Balchunas (@EricBalchunas) May 21, 2024
VanEck has since confirmed that the SEC provided comments regarding its application. The company didn't go into details, but Balchunas said he has heard the regulator wants amended filings submitted by Wednesday morning "for likely approval as soon as Wed."
Matthew Dixon, the CEO crypto ratings platform Evai, noted that the chances of spot ETH ETFs getting approved were as low as 11%, based on Polymarket data, but the probability has spiked to 50% Monday. "What a difference a day can make in #crypto," he wrote.
Sentiment had been decidedly negative regarding #ETH chances of spot #ETF approval – with the market implied odds according on @Polymarket indicating just an 11% chance of approval this morning – but this probability now stands above 50% for the first time since January.
— Matthew Dixon - CEO Evai (@mdtrade) May 21, 2024
What a… pic.twitter.com/k0aj9MDpOn
Unsurprisingly, whale holders of the Ethereum blockchain's native token have since been on the move, as per on-chain data monitored by Whale Alert. One wallet moved 11,389 ETH worth over $42.9 million, another transferred 6,714 Ether worth around $25.3 million, one Ether holder moved over 11,000 ETH worth some $42.7 million, and several others transferred their holdings across digital wallets and crypto exchanges. The biggest transfer Tuesday was 30,440 Ether worth over $115.7 million. In the last 12 hours alone, some $400 million worth of the digital currency have moved.
Meanwhile, the SEC has yet to officially make announcements regarding spot Ether ETF applications. However, there is increasing optimistic sentiment now that the regulator asked for updated filings. First in line is VanEck, which is expecting a decision from the SEC Thursday.
As of writing, Ether is trading between $3,600 and $3,700.
