Grayscale Investments, an asset management firm, has submitted to the United States Securities and Exchange Commission (SEC) an updated application for an Ethereum spot ETF (exchange-traded fund).
Is Ethereum ETF A Good Sign To Bulls?
Craig Salm, chief legal officer of Grayscale, recently stated in a post that the company has amended its 19b-4 form pertaining to an Ether spot ETF. Salm underscored the importance of this procedure, asserting that listing and trading Ether Trust shares on the New York Stock Exchange (NYSE) Arca is critical for Grayscale's Ether Trust.
Salm emphasized the need for investors to have access to Ethereum via a spot exchange-traded product, establishing connections to the discourse surrounding Bitcoin ETFs. He conveyed assurance in the case, drawing a parallel to the compelling argument in favor of spot Bitcoin ETFs.
Grayscale is among a number of companies vying for the opportunity to launch the inaugural Ethereum spot ETF in the United States. On October 10, 2023, the application was initially submitted to the SEC. Nevertheless, the ETF applications have faced numerous setbacks, the most recent being the submission by BlackRock on March 4, 2024.
Over Crypto Approval Pressured On SEC
Recent events indicate that the probability of the SEC approving an Ethereum spot ETF is diminishing. Once sanguine, Bloomberg ETF expert Balchunas now estimates that ETH funds have a 35% chance of approval.
Laphonza Butler of California and Jack Reed of Rhode Island, both Democrats and members of the Senate Banking Committee, have urged the chairman of the SEC to abstain from endorsing crypto investment products. They advocated in a letter dated March 11 for restrictions on future crypto ETF applications.
The attention-getting approval of eleven Bitcoin spot ETFs by the SEC in January prompted inquiries into whether a similar course of action would be taken for Ethereum counterparts. Nevertheless, the recent Senate letter further undermines the likelihood of an ETH ETF being approved.
ETHUSD Technical Analysis
In the daily chart of ETHUSD, the broader market direction is bullish, where the most recent price trades below the dynamic 20 day EMA.
In the high volume level, the most recent active level since 17 January 2024 is spotted at the 2286.40 level, which is way below the current price. Moreover, the 100 day Simple Moving Average is at the 2704.50 level, which is also below the current Ethereum price.
In that case, investors should monitor how the price reacts on the 3412.20 static support level. A failure to hold the price above this line could be a potential short opportunity, targeting the 2600.00 level.
The alternative scenario is to look for a bullish rejection at the 3400.00 area with a daily close above the dynamic 20 day EMA. In that case, a potential buying signal might open, targeting the 4000.00 psychological level.
