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Ahead Of The Curve
20 May 2024

ETH ETFs are back on the menu

Yesterday saw unexpected news surrounding the U.S. spot Ether ETF applications, leading to strong Ether outperformance in the last 24 hours. The risk-reward now favors short-term aggression in ETH, but traders should rotate out before the ETFs go live.
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Sudden improvement in U.S. spot Ether ETF approval odds
In a surprising move yesterday, the SEC asked exchanges to update and make amendments to their spot ETH ETF filings on an accelerated basis. This is a strong indicator that the spot ETH ETFs will be approved before VanEck’s final deadline on Thursday, May 23.Spot ETH ETF denials were the market-wide consensus up until yesterday. This consensus was shattered by the promising abrupt change in tone, leading ETHBTC to surge from 0.046 to 0.051. Following yesterday’s developments, Bloomberg analysts Balchunas and Seyffart revised their approval odds from 25% to 75%, and Polymarket’s odds of approval by May 31 have surged from 13% to 73%.
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