Crypto News Today- Is the potential rejection of the SEC’s spot Ether ETF already reflected in market prices?

Has the market already accounted for the SEC’s likely rejection of the spot Ether ETF?

Crypto News– Industry analysts widely agree that the approval of spot Ether ETFs by US regulators would likely have a bullish impact on the asset. Additionally, they believe that even if these ETFs are not approved, the market’s reaction may not be significantly negative.

Market participants have kept their expectations low regarding the approval of such funds by the Securities and Exchange Commission (SEC) this time around.

The SEC has until May 23 to decide on VanEck’s proposed ETH fund, with a similar offering from Ark Invest and 21Shares due the following day. Observers in the segment anticipate that, similar to bitcoin ETFs, the SEC will issue rulings on all ETH fund applications simultaneously.

As of Monday at 2:30 pm ET, Ether’s price stood at around $3,140, marking a 7% increase from the previous week but still significantly below its year-to-date peak above $4,000 in mid-March.

Spot Ether ETF Approval Could Fuel Price Surge, Regardless of Outcome, Observers Say

Jeff Embry, managing partner of crypto hedge fund Globe 3 Capital, predicts that the approval of a spot Ether ETF would lead to immediate price appreciation and a medium-term surge to a new all-time high above $4,800.

In contrast, many industry experts anticipate the SEC to reject Ether ETFs this month. Reasons cited include the SEC’s reluctance to clearly categorize Ether as either a security or a commodity, its lack of recent engagement with potential issuers, and the slightly weaker correlation between Ether’s spot and futures markets compared to bitcoin.

Some industry insiders suggest that a legal victory similar to Grayscale Investments‘ against the SEC might be necessary before US spot Ether ETFs receive approval.

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