Ether Surges 17%, Polymarket Approval Chances Rocket as ETF Makes Regulatory Progress

Ethereum Name Service (ENS), Ethena (ENA), and ETH-based meme coins like Pepe (PEPE) and Floki (FLOKI) are rallying amid improved approval odds for Ethereum ETFs (exchange-traded funds ETFs) this month.

Crypto prices rallied on Sunday evening as the prospect of US Securities and Exchange Commission (SEC) approval for spot Ethereum exchange-traded funds (ETFs) this month appeared to improve.

The Ethereum price rose by nearly 20% to $3,723 as of 06:28 a.m. EST, continuing its rally from last week. The price of ENS and EHT also surged by 38% and 17%, respectively, over the past 24 hours, CoinGecko data shows.

Crypto prices rallied on Sunday as the prospect of SEC approval for spot Ethereum ETFs this month appeared to improve.

Ether Surges 17%, Polymarket Approval Chances Rocket as ETF Makes Regulatory Progress

SEC asks exchanges to update 19b-4 filings for $ETH ETFs ahead of Thursday deadline, suggesting potential approval progress, though not guaranteed

Rising Together: Ethereum’s Gains Boost Meme Coins, SHIB Surges 11%

Shiba Inu and Dogecoin both experienced significant gains, rising by 11% and 7%, respectively. Other meme coins, such as Pepe (PEPE) and Floki Inu (FLOKI), also rallied with 18% and 15% in gains, respectively.

The market surge came as Bloomberg analysts and Polymarket sharply increased the estimates of the likelihood that spot Ethereum ETFs will be approved by the SEC this month.

“James Seyffart and I are increasing our odds of spot ether ETF approval to 75% (up from 25%),“ Bloomberg ETF analyst Eric Balchunas said in a May 20 X post. This follows “chatter” Balchunas heard yesterday afternoon that might suggest the “SEC could be doing a 180 on this (increasingly political issue),” he added.

Hopes of an approval surged after the SEC asked exchange applicants to update their so-called 19b-4 filings on an accelerated basis, according to a report by CoinDesk that cited three people familiar with the matter.

CoinDesk reported that exchanges that would list and trade ETH ETFS were suddenly asked by the SEC to update their filings, a development it said suggested the regulator might be preparing to approve applications ahead of Thursday, when it’s expected to decide on an application to launch an Ethereum ETF by fund manager VanEck.

A Polymarket contract asking if an Ethereum ETF would be approved by May 31 jumped from 10 cents to 61 cents as of press time. This represents a 61% approval chance.

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If the SEC approves Ether ETFs this month, capital will likely be flowing into Ethereum-based tokens.

Investors may also be exploring other altcoins, leading to a broader adoption of these cryptocurrencies. Specifically, the approval could also bolster confidence in decentralized finance (DeFi) projects like Chainlink (LINK), and Uniswap (UNI), which rely on Ethereum’s ecosystem.

Meme coins are likely to be magnifying the broader market gains ignited by possible ETH ETF approvals, as would presale tokens after launch. Among the hottest ICOs right now is WienerAI (WAI), which operates as an ERC-20 token on the Ethereum blockchain to offer users seamless compatibility with a wide range of dApps and exchanges.

Dogeverse is another favorite among analysts. It advertises itself as the world’s first chain-traveling DOGE and is a meme coin on a multichain network that spans BNB Chain, Polygon, Solana, Avalanche, and Base.