Published on mei 21, 2024, 12:48 am
Image source: Fox News
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Ethereum Price Surges to $3,700 Amid Speculation of ETH ETF Approval
The price of Ethereum (ETH) has skyrocketed to a 2-month high of $3,700 today, driven by growing optimism among analysts regarding the potential approval of a spot ETH ETF.
This surge came after Eric Balchunas, a senior analyst at Bloomberg, significantly increased the odds of approval for an Ethereum exchange-traded fund from 25% to 75%. Balchunas pointed out that the United States Securities and Exchange Commission may be under political pressure, given their previous lack of interaction with ETF applicants.
While the SEC has reportedly requested exchanges like NYSE and Nasdaq to update their filings, no official confirmation has been released. Nate Geraci, co-founder of the ETF Institute and president of the ETF Store, mentioned that the final decision is pending on the registration requirement for individual funds (S-1s).
Geraci highlighted that the SEC could potentially approve exchange rule changes separately from fund registration, possibly extending beyond VanEck’s Ethereum spot ETF request deadline on May 23. This extension allows more time for regulatory review due to complexities associated with Proof-of-Stake (PoS) cryptocurrencies.
Interest in weekly and monthly ETH options expiries has surged following anticipation surrounding the decision on the spot Ethereum ETF. Deribit reported an impressive Ether options open interest of $867 million for May 24 and an even higher $3.22 billion for May 31. In comparison, CME and OKX recorded lower monthly ETH options open interests at $259 million and $229 million respectively.
At Deribit, a dominance of call options over put options indicates active buying among traders. If Ether maintains its price above $3,600 by May 24 at 8:00 a.m. UTC, only a small portion of put instruments will be involved in expiry as lower sell option levels become irrelevant.
Looking ahead to the monthly expiry on May 31, most put options are priced below $3,600 – meaning they would be worthless if Ether surpasses this level. The balance heavily favors call options in anticipation of potential gains if Ether’s price continues to rise.
Overall, despite varying scenarios and complexities within option trading strategies related to Ethereum’s recent price surge and impending expiries, bullish sentiments remain strong among investors.
It is essential to note that this article does not offer investment advice; readers are advised to conduct thorough research before making any financial decisions in the cryptocurrency market.
Original article posted by Fox News
