Ether, the cryptocurrency powering the ethereum blockchain network, experienced its most substantial two-day gain in nearly two years on Tuesday, fueled by anticipation surrounding the outcome of applications for U.S. spot exchange-traded funds (ETFs) tracking the world’s second-largest cryptocurrency. Concurrently, bitcoin approached its all-time high.
On Tuesday, Ether soared by 8%, reaching $3,775, marking its highest level in two months, following a 13.8% surge on Monday. Meanwhile, bitcoin, the top cryptocurrency, edged up by 2.2% to $71,000, standing approximately 4% below its March peak of $73,803.25.
The U.S. Securities and Exchange Commission (SEC) is poised to deliver its verdict on several spot ether ETF applications this week. Market analysts and investors suggested that Tuesday’s surge was driven by unverified rumors hinting at the SEC‘s potential approval of these products, contrary to previous expectations of rejection.
Earlier this year, bitcoin witnessed a substantial rally after the SEC greenlit several spot bitcoin ETFs, attracting billions of dollars in investments.
In 2024 thus far, bitcoin has recorded a 67% gain, closely trailed by ether with a 60% increase.
Ethereum has taken pole position in the latest crypto rally ahead of Thursday’s first final SEC deadline to decide on an ETH ETF,” noted Ben Laidler, global markets strategist at eToro, utilizing ether’s market ticker. “Outright approval is a long shot, but any guidance on a pathway to eventual acceptance would be a big step forward.”
VanEck, ARK Investment Management, and seven other issuers have submitted applications with the SEC to list spot ether ETFs. The SEC must adjudicate on VanEck’s and ARK’s filings, which are first in line, by May 23 and May 24, respectively.
Joseph Edwards, head of research at Enigma Securities, referenced reports indicating that the SEC had requested exchanges intending to list the ether ETF to revise their filings, alongside Bloomberg ETF research indicating heightened probabilities of approval as noted by analysts.
An SEC spokesperson declined to comment on specific filings.
Opposing the ETH ETF after the BTC one was approved always seemed like an odd case for the SEC to try to push unless they were willing to open up questions on Ethereum’s securities status more broadly, and it’s likely that the call has come in somewhere to not take that fight,” remarked Edwards.
The crypto markets saw another upswing last week following data revealing a deceleration in U.S. inflation, prompting a rally in risk assets.
