Can Ethereum (ETH) Break $4,000 This Week If ETFs Are Approved?

ETH prices topped $3,700 at an intraday high in early trading in Asia on Tuesday, May 21. It’s the highest the asset has been since early April, when it rose to similar levels before falling below $3,000 a week later.

The massive 20% move has been triggered by renewed hopes that the US Securities and Exchange Commission will approve VanEck’s first ETH ETF on May 23rd.

It’s the biggest 24-hour move for ETH in over a year, and it has lifted the rest of the crypto market with it.

Total market capitalization is up 8.6% on the day to $2.74 trillion, with bitcoin nearing an all-time high of $71,600 in early Asian trading on Tuesday.

ETH Spot ETF Hopium

In a post on X on May 21, Bitcoin pioneer Anthony Pompliano said:

“If they approve the Ethereum ETF, they are approving the entire industry. This is the last dam breaking.”

The big move follows comments from Bloomberg ETF analysts James Seyffart and Eric Balchunas, who raised their odds of approval from 25% to 75% on May 20.

Balchunas reported that the SEC wants the revised Forms 19b-4 returned to them by 10 a.m. on May 21 “for approval likely as early as Wednesday.”

There are ten issuers vying for America’s first Ethereum ETF, including BlackRock, Fidelity, and Grayscale, who are aiming to convert their ETHE fund.

The Eethness Stakes is pretty good. Well done to all participants dealing with this fire drill. Hearing that the SEC wants the revised 19b-4 back by 10am this morning (based on a bunch of comments they just received today) for likely approval as early as Wednesday. https://t.co/rmkSfnX45W

— Eric Balchunas (@EricBalchunas) May 20, 2024

VanEck is the first deadline, followed by Ark 21Shares on May 24. The revelation is a reversal earlier this week when industry insiders predicted the SEC would delay approval of S-1 filings to list the new products on US exchanges.

ETF Shop President Nate Geraci said the marriage between crypto products and exchange-traded products “remains the most fascinating place in asset management right now.”

You may not like it, but the intersection of crypto and ETFs is still the most fascinating place in asset management right now…

Everyone is not only involved, but has that front and center.

The world’s largest asset managers. Government/politicians. regulators Media investors

wild things

— Nate Geraci (@NateGeraci) May 21, 2024

Prometheum Launches ETH Custody Service

In a related development, crypto asset trading and custody firm Prometheum has launched a controversial Ethereum custody service, treating the asset as a security, according to reports.

Observers have suggested that this could be in preparation for an SEC denial of ETH ETFs on the basis that it also considers the asset to be a security.

However, the recent turn in sentiment could suggest the opposite may play out this week.

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