24 hours, everything was different. 

Ethereum went up almost 20% in less than 24 hours. What is going on??

Want the tl;dr?

It looks likely that the SEC might approve an Ethereum ETF this week.

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In case you have no idea what I'm talking about, here's the full story:

➤ For months, crypto ETFs have been the talk of the market. Bitcoin ETFs launched in the US earlier this year. Their launch sent BTC to new all-time highs. 

The Bitcoin ETFs were the most successful ETF launches ever in the US 🤯

ℹ️ The Securities and Exchange Commission (SEC) is a US government body. They oversee ETFs and other securities. They approve the creation of these investment vehicles.

🚨 The SEC reportedly asked applicants to update some of the filings they had made urgently. This may not sound like much, but it happens when they work towards approving the application. 

Bloomberg analysts increased the probability of approval from 25% to 75%. This sent the market charging higher.

Ethereum rocketed up. It almost hit $3700 📈 

Why? 

Why are these ETFs a big deal?

1. ETFs allow massive institutions and regular members of the public to purchase Ethereum easily. An Ethereum ETF effectively opens the floodgates. 

2. An Ethereum ETF gives tremendous legitimacy to Ethereum and the industry.

3. A significant percentage of Ethereum is tied up. Ethereum's market cap is roughly one-third of Bitcoin's. A flood of institutional capital will affect the price of Ethereum dramatically.

𝗦𝗼, 𝘄𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝗻𝗲𝘅𝘁? 

Of course, nobody really knows. But here are some thoughts:

The short-term outlook:

↳ It appears likely that we will get approvals for Ethereum ETFs this week. 

↳ This will probably send markets higher

↳ How much higher? Nobody knows.

The longer-term outlook:

↳ Approving an Ethereum now is a US government policy shift. This could indicate a broader shift towards a more friendly attitude.

↳ Ethereum is an institutional-friendly asset. It has cashflows. It is easy for traditional investors to understand. Expect significant institutional adoption

↳ There are big questions about the general direction of the US economy and markets. Ethereum's price will, as always, be significantly influenced by the macro-economic picture.  

PS: This could all turn out to be nothing. The SEC might not approve the ETFs and the price could crash. Only time will tell.

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➤ Applications to create Ethereum ETFs were put into the SEC over the last few months. The SEC has a deadline of 23 May to make a decision about approving the ETFs. They can also choose to delay the decision by a few months.

Until now, everyone was expecting them to delay the decision. 

But yesterday, news broke❗