Crypto News Today: Ethereum (ETH) Eyes $4,000 on Spot ETF Approval Hopes

Bob Mason
Published: May 21, 2024, 01:44 GMT+00:00

Key Points:

  • On Monday (May 20), Ethereum (ETH) surged 19.24% amidst rising hopes the SEC will approve the first batch of ETH-spot ETF applications.
  • Bitcoin (BTC) rallied 5.97% and retook the $70,000 handle on the sixth consecutive session of US BTC-spot ETF market inflows.
  • ETH-spot ETH market-related chatter and BTC-spot ETF market flow data need consideration on Tuesday (May 21).
Crypto News Today

In this article:

Hopes for an ETH-Spot ETF Market Launch ETH Toward $4,000

On Monday (May 20), ETH rallied 19.24%, ending the session at $3,662.

A shift in sentiment toward SEC plans for the first batch of US ETH-spot ETF applications drove buyer demand for ETH.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas raised the odds of the SEC approving ETH-spot ETFs, saying,

“Update: James Seyffart and I are increasing our 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). See Nate’s tweet below for probably order of events (but again we capping at 75% until we see more, eg filing updates).”

The ETF analysts increased the chances of approval in response to reports of the SEC asking exchanges to update 19b-4 filings.

The SEC will likely review the applications from at least three issuers in consideration of the final deadlines.

VanEck Ethereum ETF and ARK 21Shares Ethereum ETF have final deadlines of May 23 and May 24, respectively. Hashdex Nasdaq Ethereum ETF has a final deadline of May 30, while Grayscale Ethereum Trust has a deadline of June 23.

ETH-Spot ETF Issue Deadlines approaching.
ETH-Spot ETF Issuer Deadlines

Grayscale Ethereum Futures Trust pulled its ETH-spot ETF application before speculation mounted of a possible SEC approval.

An approval could be pivotal for the broader crypto market. The SEC continues to tag ETH as a security. Approving ETH-spot ETFs could mean the SEC has u-turned, possibly paving the for other cryptos to fall under the commodity banner.

Bitcoin (BTC) also advanced on Monday, rallying 5.97% to end the session at $70,203. BTC last held onto the $70,000 handle on April 11.

US BTC-spot ETF Market Extends Net Inflow Streak to Six Sessions

On Monday (May 20), the US BTC-spot ETF market eyed the sixth consecutive day of total net inflows.

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw net inflows of $9.3 million. Significantly, GBTC extended its net inflow streak to four sessions.
  • ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $68.3 million.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $64.0 million.
  • Bitwise Bitcoin ETF (BITB) reported net inflows of $24.0 million.
  • Excluding flow data from iShares Bitcoin Trust (IBIT), (BRRR), and (BTCW), the US BTC-spot ETF market saw total net inflows of $165.6 million.

Technical Analysis

Bitcoin Analysis

BTC remained comfortably above the 50-day and 200-day EMAs, affirming the bullish price trends.

A BTC breakout from the $70,500 handle would support a move toward the $73,808 all-time high.

BTC-spot ETF market flow data, ETH-spot ETF market-related news, and SEC activity need consideration.

Conversely, a BTC break below the $69,000 support level would bring the 50-day EMA and the $64,000 support level into play.

With a 62.32 14-Daily RSI reading, BTC could move to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 210524

Ethereum Analysis

ETH sat above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH breakout from the $3,750 handle would give the bulls a run at the $3,835 resistance level. A break above the $3,835 resistance level would bring the $4,000 handle into play.

Conversely, an ETH break below the $3,500 handle could give the bears a run at the $3,244 support level.

The 14-period Daily RSI reading, 71.02, shows ETH in overbought territory. Selling pressure could intensify at $3,800.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 210524

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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