Bitcoin Surpasses $70K, Ethereum Jumps 17% on ETF Approval Hype

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The cryptocurrency market erupted in excitement on Monday, May 20, as Bitcoin surged past the $70,000 mark and Ethereum skyrocketed nearly 17%, reaching its highest level since mid-April. The rally was fueled by growing optimism around the potential approval of a spot Ethereum exchange-traded fund (ETF) in the United States.

At the heart of the market movement was a pivotal update from Bloomberg analyst Eric Balchunas, who announced he had raised his odds of a spot Ethereum ETF approval from 25% to 75%. In a post on X (formerly Twitter), Balchunas cited emerging rumors suggesting the U.S. Securities and Exchange Commission (SEC) might make a dramatic policy reversal on the issue—a shift he attributes to increasing political pressure.

“I just heard some chatter that the SEC might do a 180 on this (it’s getting more political by the day), so everyone is scrambling to get ready,” Balchunas wrote.

This sudden change in sentiment sent shockwaves through the crypto community and financial markets alike, triggering a wave of buying across major digital assets.

Understanding the ETF Approval Process

To fully grasp the significance of this development, it’s important to understand the two key regulatory filings involved: 19b-4 and S-1.

The 19b-4 filing is submitted by exchanges seeking to list new financial products—such as ETFs—and outlines proposed rule changes related to trading mechanisms, oversight, and market surveillance. The SEC reviews these filings and opens them for public comment before making a decision.

On the other hand, the S-1 filing is a comprehensive registration statement required by any company planning to offer securities to the public. For ETFs, this document includes critical details such as fund structure, fees, custodial arrangements, risk disclosures, and audited financials. Approval of the S-1 is essential before any ETF can officially launch.

Bloomberg analyst James Seyffart clarified that Balchunas’ updated forecast specifically refers to the May 23 deadline for VanEck’s 19b-4 filing. While this suggests a strong possibility of initial regulatory green light, Seyffart emphasized that S-1 approval remains pending—and could take weeks or even months.

“Even if we see 19b-4 approvals this week, S-1s are still needed. But if we’re right, then it becomes a question of when, not if,” Seyffart noted.

👉 Discover how ETF developments could reshape crypto investing in 2025.

Market Reaction: ETH Hits $3,590, BTC Clears $70K

The news catalyzed a powerful rally across the board. Ethereum (ETH) surged to $3,590**, its highest level since April, marking an intraday gain of nearly 17%. Bitcoin (BTC), not to be outdone, broke through the **$70,000 resistance zone—a psychological milestone—for the first time since mid-April. At its peak, BTC had climbed over $4,500 from its daily low.

The breakout reflected renewed investor confidence and triggered significant leveraged trading activity. According to Coinglass data:

Notably, short sellers bore the brunt of the rally, with over 74% of total liquidations coming from bearish bets—a clear sign of a short squeeze in motion.

Why This ETF Momentum Matters

The potential approval of a spot Ethereum ETF represents a transformative moment for the crypto industry. Much like the January 2024 launch of spot Bitcoin ETFs opened the floodgates for institutional capital, an Ethereum ETF could bring similar legitimacy and liquidity to the second-largest cryptocurrency.

Ethereum’s unique value proposition—smart contracts, decentralized applications (dApps), and its role as the backbone of DeFi and NFTs—makes it particularly attractive to long-term investors. A regulated ETF would allow traditional finance (TradFi) participants to gain exposure without holding ETH directly, reducing custody and security concerns.

Moreover, increased political attention appears to be influencing SEC dynamics. With the 2024 U.S. election cycle heating up, regulators may face pressure to align with pro-innovation policies—especially given Ethereum’s growing economic footprint.

👉 See how institutional adoption is accelerating in the crypto space.

FAQ: Your Questions About Ethereum ETFs Answered

Q: What does a spot Ethereum ETF mean?
A: A spot Ethereum ETF directly holds ETH tokens and tracks their real-time market price. Unlike futures-based ETFs, it provides true exposure to Ethereum’s underlying value.

Q: Will Ethereum ETFs launch immediately after 19b-4 approval?
A: Not necessarily. While 19b-4 approval allows an exchange to list the ETF, S-1 registration must also be cleared by the SEC before trading begins. This process has no fixed timeline.

Q: How could an Ethereum ETF impact ETH’s price?
A: Historically, spot Bitcoin ETF approvals preceded major price rallies. Similar demand from institutional investors could drive significant upward momentum for ETH.

Q: Are all Ethereum ETF applications at the same stage?
A: No. Different issuers—including VanEck, ARK Invest, and Fidelity—have varying submission timelines. VanEck’s 19b-4 decision is due by May 23, making it a key near-term catalyst.

Q: Could the SEC still reject Ethereum ETFs?
A: Yes. Despite rising odds, final approval isn’t guaranteed. The SEC may raise concerns about market manipulation or investor protection—though many experts believe those hurdles are now lower than before.

Q: How is this different from Bitcoin ETFs?
A: While both aim to bring crypto into mainstream finance, Ethereum’s ecosystem is more complex due to its utility in DeFi and smart contracts. However, its established network effects strengthen the case for regulatory acceptance.

Final Thoughts: A Turning Point for Crypto?

The surge in Bitcoin and Ethereum prices reflects more than just speculation—it signals shifting perceptions about regulation, adoption, and long-term viability. With analysts upgrading approval odds and insiders reporting active SEC engagement, the path toward a spot Ethereum ETF seems clearer than ever.

While investors should remain cautious—especially given high volatility and pending S-1 reviews—the momentum suggests we may be entering a new phase of crypto maturity.

As developments unfold this week, particularly around the May 23 deadline, market participants will be watching closely for official announcements. Whether or not immediate approvals come, one thing is certain: the era of institutional crypto investing is accelerating.

👉 Stay ahead of the next market move with real-time data and insights.

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