Cryptocurrency research firm 10x Research raised the chances of the SEC greenlighting the Ethereum ETH spot ETF later today to 90%.
What Happened: In its latest newsletter, 10x Research deemed the approval a "formality". It noted that an X post by SEC Chair Gary Gensler cautioning investors of potential risks–similar to the one before the approval of Bitcoin BTC/USD ETFs in January–could come around 9 a.m. EDT. This is typically a sign of the approval being immediate.
The analytics platform highlighted that the Grayscale Ethereum Trust ETHE has narrowed its discount to its net asset value (NAV) to 8% from 30% a week ago.
"An 8% discount implies at least a 90% probability that an ETF would be approved," the firm pointed out.
The research firm also foresaw the approval becoming a "sell the news" event. These fears aligned with the moves of Ethereum co-founder Jeffrey Wilcke who transferred nearly 10,000 ETH to cryptocurrency exchange Kraken.
Why It Matters: The mood in the cryptocurrency market was upbeat as VanEck’s spot Ether ETF was listed by the Depository Trust and Clearing Corporation (DTCC) — a necessary precursor to SEC approval. Note that the final decision on VanEck's application is expected to come from the SEC later today.
Alongside, a slew of other ETF hopefuls, including BlackRock Inc. BLK amended their 19b-4 filings for spot Ether ETFs.
Meanwhile, the chances of approval on decentralized prediction market Polymarket jumped to 67%
Price Action: At the time of writing, Ether was exchanging hands at $3,785.04, following marginal gains of 0.83% in the last 24 hours, according to data from Benzinga Pro.
Read Next: Dogecoin Reversal Imminent, Says This Analyst — Predicts Over 30% Upside
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
