Original | Odaily Planet Daily

Author | How to be a husband

At around 5 a.m. Beijing time this morning, the SEC officially approved Form 19B-4 for the Ethereum spot ETF.

The sharp fluctuations in the market from the night before to now (ETH has a price difference of nearly $500 between approximately $3,500 and $3,950) are enough to prove that investors are still confused and divided about the approval results.

In fact, the SEC-approved Form 19 B-4 is one of the two documents submitted by the issuer of the Ethereum spot ETF. Another document needs to be approved before the Ethereum spot ETF can be officially launched - the S-1 registration statement.

But for the market, the SEC has approved the 19 B-4 form, which means that the Ethereum spot ETF only needs a certain amount of time to be officially launched. From the SEC's documents, we can see that the relevant issues in the S-1 have been clarified, and the issuer only needs to make timely modifications and follow up. This also means that the Ethereum spot ETF is not far from being officially launched.

Market Interpretation

The news that night was not as dramatic as when the Bitcoin spot ETF was approved, but this calmness had an even greater impact on the market.

According to Coinglass data, the total network liquidation in 24 hours was US$356 million, of which long positions liquidated US$258 million and short positions liquidated US$98.4177 million.

Since 8 o'clock last night, the price of Ethereum dropped from 3900 USDT to 3700 USDT, and then experienced a period of volatility. At 4 o'clock this morning, it plunged sharply to above 3500 USDT, and then broke through to 3900 USDT, but then plunged down to 3700 USDT. It has now slowly risen from 3700 USDT to 3845 USDT (as of writing).

The market is uncertain whether the SEC will approve the Ethereum spot ETF, resulting in any "slightest disturbance" causing drastic fluctuations in the market.

For example, at 4 a.m. today, Bloomberg analysts had expected the SEC to announce the results at 4 a.m., but there was no news, causing the market to fall sharply.

For example, at the news level, the SEC approved the spot Ethereum ETF, and the market responded quickly and broke through to 3,900 USDT. However, it was realized that only the 19 B-4 form was approved and the spot Ethereum ETF could not be officially launched, so it fell to 3,700 USDT.

From this we can see that in the face of uncertain market news, the market is extremely fragile and the market stability is poor.

Future predictions

From May 20, the Ethereum spot ETF has gone from being unpopular to being approved. Now it is only a matter of S-1 registration statement away from its official launch. This is a blessing from heaven for Ethereum and the crypto world.

Judging from the documents announced by the SEC, the S-1 registration statement may require some time for negotiation, such as pledge and security issues. However, most issuers have already modified the pledge part of the S-1 registration statement, and I believe that the subsequent progress can be accelerated.

The approval of the Ethereum spot ETF may open a new round of crypto asset ETFs, and SEC Chairman Gary Gensler said: "I believe that the U.S. SEC has legal tools applicable to the field of cryptocurrency securities, and does not assume that all crypto tokens are securities."

Next, the only other major positive factor left for the market is the Federal Reserve’s interest rate cut. Although the specific time has not been determined, the expected positive factor will inevitably bring certain upside potential to the crypto market in the next stage.

Odaily Planet Daily would like to remind you that the recent market fluctuations are large, please pay attention to risks and reduce leverage.