Ethereum Records Largest Daily Gains In 3 Years, Flips Mastercard And LVMH In Market Cap

On Monday afternoon, news broke that the probability of the SEC at least partially approving a spot ethereum ETF had vastly increased. This immediately led to massive buying activity for ETH, sending the price from less than $3,100 to over $3,800 in 24 hours. This marked the largest daily move for ETH since May 2021. 

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The move followed a post on X from Eric Balchunas, a Bloomberg ETF analyst, who has been covering crypto ETFs for several months. The post detailed how he is raising the "odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied)."

The post has amassed nearly five million views at the time of writing and was one of the first to start the frenzy surrounding the spot ETH ETFs. The announcement was highly unforeseen, as many had written off the ETFs due to the SEC's lack of comment on the issue and final deadlines for a decision looming later this week. 

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This news further enabled ethereum to reach a market cap of over $450 billion, making it larger than all but 20 companies worldwide. Here are some of the companies that ethereum surpassed after the news:

• Mastercard (MA)
• LVMH (LVMUY)
• Procter & Gamble (PG) 
• Samsung (KRW)
• Bank of America (BOA)

However, approval of ETFs is not as black and white as a simple "yes" or "no" from the SEC because two forms must be approved for the ETFs to go live. The 19b-4 form allows the funds to list the ETFs, while the S-1 form is a detailed account of how the ETFs would work. According to ETF analyst Nate Geraci, the SEC could greenlight the 19b-4 forms but delay a decision on the S-1s. This would give them time to take a closer look at the individual applications from different sponsors to understand what a launch would look like. 

If this were to happen, it would be a positive for the spot ETFs and ethereum. It would allow the applications to move into the next stage of the process and one step closer to launch. Additionally, the possibility of full approval of the 19b-4s and S-1s is still on the table.

Many crypto enthusiasts believe that a spot ETF approval would propel ETH to a price above $4,000, with some predicting that ETH could set new ATHs above $4,900. Given that Bitcoin hit new highs after the approval of its ETFs, a similar trend could occur for ethereum. 

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