Ethereum Climbs Back to $3,800 as SEC Approval for ETH ETFs Looms Despite Gensler's Ambiguity

Ethereum (ETH) rebounded on Thursday, recovering from a brief decline, as U.S. lawmakers urged SEC Chair Gary Gensler to approve spot ETH ETFs. Additionally, Hong Kong regulators are considering allowing issuers to offer ETH staking to investors.

Market Movers: Lawmakers Urge Gensler on ETH ETFs

Ethereum remains the most discussed digital asset, with only a few hours before the SEC's decision on spot ETH ETFs, including Van Eck's application.

A bipartisan group of Congress members sent a letter to SEC Chair Gary Gensler, advocating for the approval of spot ETH ETF applications and other digital assets in the future. They argued that exchange-traded products (ETPs) provide a regulated way for investors to access crypto, emphasizing that the same principles applied in approving spot Bitcoin ETFs should be used for spot ETH ETFs, as the legal considerations are similar for both Bitcoin and Ether.

Gensler refrained from commenting directly when asked about the SEC's stance on Ethereum ETFs. However, he reiterated at an event in Washington that most crypto assets are securities. "There's 15,000 or 20,000 tokens in this field. They do not operate as currency," Gensler stated. "Not every crypto token is a security [...] but I believe, again without prejudging, most are."

SEC Filing Updates and ETF Approvals

The SEC requested updated 19b-4 forms from exchanges on Monday. By Wednesday, all applicants except Hashdex had submitted these forms, including BlackRock, Bitwise, Grayscale, Van Eck, Ark 21Shares, Fidelity, Franklin, and Invesco. Fidelity and Grayscale also revised their S-1 applications, removing references to staking, and

anticipating potential SEC rejections on those grounds.

The 19b-4 filings are necessary for national exchanges like NASDAQ or NYSE to seek approval for listing new products. S-1 forms provide initial registration details on fund management and asset tracking.

While expert insights and issuer interactions suggest a likely approval of the 19b-4 filings by the SEC, it remains uncertain until the official order is released. Industry experts also note that spot ETH ETF S-1 applications might take days or weeks for SEC approval.

Hong Kong's Ethereum ETFs and Staking Discussions

Despite Ethereum's recent price surge, Hong Kong's spot Ethereum ETFs have not seen significant subscription or trading volume increases. On May 22, the net subscription for the day was 62.8 ETH, and the total single-day transaction volume was $390,300, according to SoSoValue data.

The Hong Kong Securities & Futures Commission (SFC) is discussing allowing issuers to offer staking features to attract more investors, as reported by Tree News. The low interest in current offerings may be driving this consideration.

Ethereum Technical Analysis: Potential for Significant Rally

Ethereum is trading around $3,818, recovering from a dip that interrupted its attempt to break the $4,093 resistance level. The strong support at $3,730 helped stabilize the price. Analysts suggest that if the SEC approves the ETF, Ethereum could see a rally exceeding 75%.

In summary, while Ethereum has shown resilience and potential for significant growth, the outcome hinges on regulatory decisions by the SEC and potential new offerings in markets like Hong Kong.