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CDS Crypto News SEC’s May 23 Decision: Should Ether Investors Cash Out Before the Verdict?

Crypto News

SEC’s May 23 Decision: Should Ether Investors Cash Out Before the Verdict?

Analysts suggest that the market may have already factored in the rejection, potentially rendering the official announcement as a 'neutral event.'

Ecem EFE17/04/20241 Mins read121

SEC's May 23 Decision: Should Ether Investors Cash Out Before the Verdict?

Crypto News- As May approaches, the anticipation surrounding the SEC’s decision on spot Ether ETFs grows more palpable. Analysts, including prominent voices like Eric Balchunas from Bloomberg, have steadily slashed their odds of approval, citing a mere 25% chance. This sentiment aligns with decentralized prediction markets like Polymarket, painting a bleak 18% probability.

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SEC’s May 23 Decision: Should Ether Investors Cash Out Before the Verdict?

Even Jan van Eck, CEO of VanEck, the first to file for a spot Ether ETF, has conceded that a green light by May 23 seems improbable. With consensus pointing towards rejection, investors brace for impact.

Insights from Crypto Veterans: Ethereum’s Resilience Amidst ETF Rejection Fears

Lark Davis, a seasoned crypto investor, echoes a sentiment shared among many: the rejection seems already baked into the prices. “Approval is the only game-changer,” Davis notes, highlighting the potential surge in demand that would follow. Jonathan Bier from Farside Investors agrees, suggesting that Ethereum’s ecosystem, driven by decentralized applications and technological innovation, may weather the storm better than Bitcoin.

Speaking of Bitcoin, the correlation between the two giants stands at 62%, indicating a synchronous dance in their market movements. Yet, as Davis observes, Ether’s resilience may cushion any blow to the wider crypto market.

Despite the looming rejection, optimism persists for Ether’s future ETF approval. Comparisons to Bitcoin’s protracted journey towards ETF acceptance are drawn, hinting that Ethereum’s wait may be shorter but not imminent. As Davis reassures, Ethereum’s upward trajectory, fueled by staking demand and Layer 2 solutions like Base, remains steadfast. The ETF denial, while a setback, is viewed as a temporary hurdle in Ethereum’s ascent.