The optimism surrounding the approval of spot Ethereum ETF by the end of May has dropped from 70% to now at 25%.
On Monday, May 6, the US Securities and Exchange Commission (SEC) delayed its decision over the approval of the Invesco Galaxy spot Ethereum ETF. In its filing, the SEC stated that the next deadline for the agency to consider would be July 5, 2024, for either approving/disapproving the spot Ether ETF.
The regulator stated:
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Earlier in February, the SEC had also delayed making a move on the Invesco Galaxy Ethereum ETF while seeking public comments for the same. Previously, the securities regulator has also pushed back the deadlines for Ether ETF applications from Grayscale, VanEck, Franklin Templeton, etc.
On the other hand, the optimism for the spot Ethereum ETF approval has been waning in recent times. Bloomberg ETF analyst Eric Balchunas has revised down his estimation of the likelihood of a spot Ethereum ETF approval by late May from approximately 70% to 25%.
Ether (ETH) Price Dips 3.5%
Soon after the development, Ethereum price saw a 3.5% dip dropping all the way to the support levels of $3,000. The recent slump in Ethereum (ETH) price also comes amid the growing investor uncertainty in the broader cryptocurrency market.
Recent data from Lookonchain indicates that a significant Ethereum whale withdrew 7,000 ETH from Lido and transferred them to Binance on Monday, following Ethereum’s recent price dip. According to their previous transaction history, this whale has realized profits exceeding $16 million. The whale withdrew 12,906 ETH at a price of $1,890 from Binance and staked them in Lido.
Despite this recent whale transaction, Ethereum on centralized exchanges (CEXs) has been experiencing a consistent decline, dropping from 16% in March to 10.66% on May 5, as per Glassnode data. On the other hand, there are a few positive developments as well.
📈 #Ethereum rebounded back above $3,200 this weekend, and saw massive network growth. 196.71K new addresses were created on the $ETH network on May 4, 2024, the largest single day of growth since October 8, 2022. This should be viewed as a #bullish sign. https://t.co/l9iFVWCJpE pic.twitter.com/MlHQTvKKN0
— Santiment (@santimentfeed) May 6, 2024
According to on-chain data from Santiment, Ethereum experienced a resurgence over the weekend, reclaiming a position above $3,200. Notably, the network witnessed a surge in activity, with 196.71K new addresses created on May 4, 2024. This marks the most significant single-day growth in network addresses since October 8, 2022. Analysts suggest that this uptick in network activity should be interpreted as a bullish indicator for Ethereum.
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