Option Investors Prepare for Ethereum (ETH) Surge by Month-End!

• The U.S. Securities and Exchange Commission (SEC) is nearing its final decision deadline on spot Ethereum ETF applications.
• Investors and analysts are preparing for increased volatility at the end of May due to the strong possibility of the SEC rejecting the ETF applications.
• Market and investors believe there is a 16% chance of the ETH ETFs being approved by the end of May, according to Wintermute OTC analyst Jake Ostrovskis.

The SEC is nearing its decision deadline on spot Ethereum ETF applications, with the market and investors predicting a 16% chance of approval. Increased volatility is expected at the end of May due to the strong possibility of rejection.

SEC’s Decision on Ethereum ETF Applications

The SEC’s final decision deadline on two spot Ethereum ETF applications is fast approaching. At this point, the SEC has until May 23 and May 24 to decide whether to approve the spot ETH ETF applications submitted by VanEck and ArkInvest/21 Shares. The market and investors are preparing for increased volatility at the end of May due to the strong possibility of the SEC rejecting the ETF applications.

Predictions on the Outcome

According to Wintermute OTC analyst Jake Ostrovskis, the market and investors believe there is a 16% chance of the ETH ETFs being approved by the end of May. He also expects an increase in ETH price volatility at the end of the month. While the possibility of the SEC rejecting the ETF applications is higher than approval, investors are more curious about the reason why the SEC would not approve the ETH ETFs.

Implications of the SEC’s Decision

The SEC’s decision will have significant implications for how Ethereum is classified – as a security or a commodity. Analysts Peter Chung and Min Jung from Presto Research commented on this, saying: “Market analysts noticed a hint in one of the SEC’s documents that suggests possible reasons for a potential rejection. These documents support the ideas that the SEC made its decision about Ethereum’s status a long time ago and is trying to legitimize this decision with the ETF decision.”

Conclusion

The SEC’s decision on the Ethereum ETF applications will have significant implications for the crypto market. With the deadline fast approaching, the market and investors are preparing for increased volatility. Regardless of the outcome, the decision will provide valuable insights into the SEC’s view of Ethereum and its classification as a security or a commodity.