Ether (ETH) Surges 17%, Polymarket Approval Chances Rocket, as ETF Makes Regulatory Progress
Ether (ETH) traded above $3,600, marking a 17% increase, due to favorable regulatory developments that suggest an ether exchange traded fund (ETF) may soon be approved. The Securities and Exchange Commission (SEC) has asked exchanges to update 19b-4 filings for ether ETFs, indicating potential progress towards approval. However, the SEC could still reject the S-1 registration statement of the ether ETF, which would delay its approval and trading commencement. The ether implied volatility curve flattened as 25-delta risk reversals hit year-to-date highs above 18%. Traders heavily bought $4000 calls for 24 May 2024 and 31 May. Polymarket contracts indicate a 55% chance that an ether ETF will be approved by May 31 and a 68% chance by June 30. Decisions on VanEck's and Ark's proposed ether ETFs are due on May 23 and May 24 respectively.
