Cryptocurrency Market Sheds Over $100 Billion Ahead of SEC’s Decision on Spot Ether ETF

As an experienced analyst with a background in cryptocurrency markets, I’ve seen my fair share of regulatory decisions causing significant volatility. The ongoing anticipation surrounding the SEC’s decision on VanEck’s Ether ETF application has once again brought this reality to the forefront.


Approximately $100 billion in value has been wiped out from the cryptocurrency market in anticipation of the SEC’s verdict regarding VanEck’s proposed Ether ETF.

As a researcher observing the cryptocurrency market, I’ve noticed that the anticipation leading up to major decisions has been causing considerable price instability. For instance, Bitcoin‘s value fluctuated significantly from around $71,000 to under $68,000 at present.

The cost of Ethereum‘s Ether, the second-largest cryptocurrency by market value, experienced a 20% increase in just one day this week. This price jump occurred following the SEC’s request for exchanges to revise important filings regarding new investment products based on these digital assets. This action sparked rumors that the regulatory body could be considering approving these products, leading to heightened market excitement.

VanEck’s Ethereum ETF application is approaching a decision point with the Securities and Exchange Commission (SEC). The 19b-4 form, required for regulatory approval, is set to expire today, leaving the SEC to determine whether to approve or deny the proposed Ethereum investment vehicle.

As a senior ETF analyst at Bloomberg, I have made an prediction based on current trends and past regulatory actions. The Securities and Exchange Commission (SEC) is expected to make a decision on approving a Bitcoin futures ETF within the next few hours. This timing aligns with the same time of day when the SEC approved spot Bitcoin ETFs back in January.

Based on my estimation, we can expect to receive news from the SEC around 4 p.m. tomorrow. Previously, announcements for Bitcoin spot have been made as early as 3:45 p.m., while others have come slightly after 4 p.m. However, there’s a possibility that it could still be later in the day.

— Eric Balchunas (@EricBalchunas) May 22, 2024

The unpredictable market has resulted in approximately $220 million in forced liquidations today, impacting traders who had relied heavily on borrowed funds prior to a significant decision. Meanwhile, ETH has shown resilience with a 1.8% increase over the past day, surpassing Bitcoin’s 3% decline.

As a crypto investor, I’ve noticed a downturn in the market today. BNB has dipped by nearly 4%, dropping below the $600 mark, while Solana (SOL) has seen a similar decrease, reaching $172. Several other tokens have also experienced losses. Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), and Shiba Inu (SHIB) have all dropped by varying degrees, with DOGE seeing a 2.5% decrease, ADA losing around 4%, AVAX dipping by almost 5%, and SHIB experiencing a decline of approximately 5.7%.

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2024-05-23 19:03