Ether (ETH) surged 17% to over $3,600 following positive regulatory developments that boost the likelihood of an ether ETF approval.
As the Asia business day commenced, Ether (ETH) was trading above $3,600, marking a 17% increase driven by favorable regulatory signals suggesting that an ether exchange-traded fund (ETF) may soon receive approval. This optimism also caused the yes sides of various Polymarket contracts to spike.
The SEC's request for exchanges to update 19b-4 filings, which propose rule changes, indicates potential progress toward spot Ether ETF approvals. However, despite these updates, the SEC might still reject the S-1 registration statement for the ether ETF, potentially delaying its approval and trading initiation.
This significant regulatory development has impacted the ether implied volatility curve, flattening it as 25-delta risk reversals hit year-to-date highs above 18%.
On Polymarket, a contract querying whether an ether ETF will be approved by May 31 surged from 10 cents to 55 cents, reflecting a 55% probability of approval by this date. Another Polymarket contract, asking if the ETF will be approved by June 30, is currently trading at 68%.