In the aftermath, ETH dropped to $3,200. Bitcoin (BTC), the largest cryptocurrency, dropped to around $62,000 after bouncing to near $64,000 earlier. The broad-market CoinDesk 20 Index (CD20) fell 3%.#HotTrends

"I do think this relates to the ETF … The SEC has been in an untenable position for some time with its position on ETH,” said Scott Johnson, general partner at Van Buran Capital in a post on X. “This is in my opinion either an attempt to maintain its ambiguity for just a bit longer or the SEC is going nuclear option.” #ETFs✅ #Ethereum✅ #HotTrends

Designating ETH as a security could complicate efforts to create ether ETFs in the U.S. The SEC has a May deadline to decide on approval. An analyst at Bloomberg Intelligence on Tuesday said he doesn't expect such a fund to get approved by May, given the regulator's lack of engagement with potential issuers – a contrast to the active conversations around spot bitcoin ETFs before they got the green light in January. #HotTrends