ETH Prices Rally as ETF Rumours Swirl; Analysts Boost Approval Odds from 25% to 75%

The hype train is departing the station! Please ensure your FOMO is safely stowed!

Ethereum, the second largest cryptocurrency by market cap, has surged over 20% in the past 24 hours on news of sudden progress towards US spot ETF approvals. 

According to a report from CoinDesk which cited three unnamed sources, the US Securities and Exchange Commission (SEC) has requested that exchanges intending to list the ETFs update their 19b-4 filings as soon as possible. Some speculate the regulator may be looking to approve these filings before the Thursday deadline for a decision on VanEck’s spot ETF application.

Related: Coinbase Reveals Optimistic View on Ethereum ETF Approval, Expert Weighs in 

ETH Spot ETFs Look More Likely, But There Could Still Be Delays

On the back of this news, Bloomberg’s Senior ETF analyst Eric Balchunas posted on X that he and fellow Bloomberg analyst, James Seyfartt, are updating their odds on Ethereum spot ETF approvals from 25% to 75%:

But approval of the exchanges’ 19b-4 filings doesn’t mean the spot ETFs could immediately launch. The S-1 filings from the ETF issuers also need to be approved, and according to the co-founder of the ETF Institute, Nate Geraci on X, it’s possible the SEC could delay a decision there:

Technically possible for SEC to approve 19b-4s & then slow play S-1s (esp given reported lack of engagement here).

Nate Geraci, Co-founder of The ETF Institute

Although it seems like there could be rapid progress on that front too, with Fox Business crypto reporter, Eleanor Terrett, posting to X that an Ethereum spot ETF issuer had told her that “things are evolving in real time”.

Related: Franklin Templeton Lists Ethereum ETF on DTCC – Here Is What It Means 

At the time of writing Ethereum was up 20.9% on the day, according to data from CoinGecko, and was changing hands at around AU$5,520.

US House Votes To Repeal Cybersecurity Disclosure Rule

In a related development, the US House Financial Services Committee has voted to advance a measure to repeal an SEC rule requiring publicly-traded companies to publicly disclose any cybersecurity incidents within four business days of their discovery.

The rule was only approved last July, but opponents—led by Republican Andrew Garbarino— argue that it requires companies to reveal sensitive information that may make them more vulnerable to further cyber attacks:

Disclosing such information potentially compromises the confidentiality of a company’s cybersecurity programs and reveal details such as the scope and frequency of testing, nature of third-party systems and specific remediation activities.

Andrew Garbarino, Rep. Andrew Garbarino, R-N.Y

US President Joe Biden has previously said in the unlikely event that the measure clears the House and Senate he would veto it, preventing removal of the rule—much like he vowed to veto removal of an SEC crypto accounting rule.