Bitcoin experienced a significant surge on Tuesday, mirroring the rally in Ether following a media report indicating progress toward the approval of spot-Ether exchange-traded funds (ETFs) for U.S. markets.
The world’s leading cryptocurrency saw a notable increase of 5.8% over the past 24 hours, reaching $70,987.1 by 01:08 ET (05:08 GMT). However, it was Ether, the second-largest token globally, that stole the spotlight, soaring by an impressive 17% to reach a 1-½ month high of $3,656.01.
The surge in Ether followed a report from Coindesk, revealing that the U.S. Securities and Exchange Commission (SEC) had requested applicants for spot Ether ETFs to update certain key filings ahead of a crucial deadline for ETF approval scheduled for later this Thursday. While the report cautioned that approval was not guaranteed, it signaled progress toward a potential future approval.
Analysts at Bloomberg, Eric Balchunas, and James Seyffart, revised their expectations for spot Ether ETF approval to a 75% probability from the previous 25%, citing the Coindesk report. They suggested that the SEC‘s actions indicated a potential shift in stance towards approval.
Previously, the SEC had shown reluctance towards approving a spot Ether ETF, particularly amidst reports of pursuing action against the Ethereum Foundation regarding Ether’s classification as a security. However, an approval could ignite a similar rally in Ether as witnessed with Bitcoin earlier in 2024, when institutional investors flooded into ETFs, propelling the token to record highs.
Additionally, recent data from digital assets manager CoinShares revealed a second consecutive week of capital inflows into crypto investment products, totaling $932 million in the week to May 20. This trend was supported by speculations of a potential cut in interest rates by the Federal Reserve following soft readings on U.S. inflation. While Bitcoin continued to dominate capital flows, altcoins like Solana, XRP, Dogecoin, and SHIB also saw notable gains, tracking Ether’s upward momentum.
