The cryptocurrency market is abuzz with speculation as Ether experiences its largest two-day gain in nearly two years. The surge in price comes amidst discussions surrounding the approval of U.S. spot exchange-traded funds (ETFs) that track the world’s second-largest cryptocurrency. Ether, the native token of the Ethereum blockchain network, has soared by 8% to reach $3,775, marking its highest price point in two months. This recent surge follows a 13.8% jump on Tuesday. Bitcoin, the leading cryptocurrency, also rallied and approached a record high, climbing by 2.2% to hit $71,000, just 4% below its March peak of $73,803.25.
The U.S. markets regulator is expected to make a decision on several spot ether ETF applications this week. Traders and investors are closely monitoring the outcome after hearing unconfirmed rumors that the Securities and Futures Commission may give the green light to these financial products. This speculation comes as a surprise, as initial expectations leaned towards the rejection of these ETFs. Earlier this year, Bitcoin witnessed a sharp surge in price following the approval of spot bitcoin ETFs by the SEC, resulting in significant capital inflows. Despite Bitcoin’s strong performance in 2024, with a 67% gain, Ether is quickly catching up with a 60% increase in value.
According to Ben Laidler, a global markets strategist at eToro, Ethereum has taken the lead in the recent crypto rally ahead of the upcoming SEC deadline to decide on an ETH ETF. While an outright approval is considered a long shot, any indication of a potential path towards acceptance would be a significant milestone for the industry. VanEck, ARK Investment Management, and other issuers have submitted applications to the SEC for listing spot ether ETFs.
Joseph Edwards, the head of research at Enigma Securities, highlighted reports suggesting that the SEC had requested exchanges to update their filings for the ether ETFs. Additionally, Bloomberg ETF research revealed that analysts have revised their probabilities of approval higher. The SEC refrained from commenting on specific filings, prompting speculation about the potential approval of the ETFs. Edwards noted that opposing the ETH ETF, especially after approving the BTC version, would raise questions about Ethereum’s securities status.
The recent surge in cryptocurrency prices coincides with a broader market trend following data showing a decrease in U.S. inflation. This development sparked a rally in risk assets, including cryptocurrencies, further fueling investor interest in digital assets. As the SEC prepares to make its decision on the spot ether ETF applications, the cryptocurrency market remains highly reactive to regulatory developments and market speculation. Traders are closely watching for any indications of regulatory approval or rejection, which could significantly impact the price trajectory of Ether and Bitcoin in the coming days.