Ether is poised for its most significant two-day surge in almost two years this Tuesday, fueled by anticipation surrounding the verdict on U.S. spot exchange-traded funds (ETFs) that are pegged to the second-largest cryptocurrency. Concurrently, bitcoin is nearing its all-time high.
The Ethereum blockchain’s native token, Ether, saw an 8% increase to $3,775, marking a two-month peak, following a 13.8% rise on Monday.
Bitcoin, the leading cryptocurrency, has climbed 2.2% to $71,000, just shy of its March high of $73,803.25 by about 4%.
This week, the U.S. financial regulator is slated to announce decisions on several pending spot ether ETF applications. The recent surge on Tuesday is attributed to rumours that the U.S. Securities and Exchange Commission may greenlight these products, contrary to earlier investor expectations of rejection.
Earlier in the year, bitcoin experienced a significant rally after the SEC approved multiple spot bitcoin ETFs, which subsequently attracted billions in capital.
In 2024, bitcoin has already appreciated by 67%, with ether closely trailing at a 60% increase.
“Ether has surged to the forefront of the current cryptocurrency rally as we approach the SEC’s initial deadline this Thursday to rule on an ETH ETF,” stated Ben Laidler, global markets strategist at eToro, referring to ether by its ticker symbol. “While outright approval remains unlikely, any indication of a potential route to eventual authorization would represent a considerable advancement.”
VanEck, ARK Investment Management, and seven other firms have submitted applications to the SEC for the listing of spot ether ETFs. The SEC is expected to make a decision on the applications from VanEck and ARK, which are at the forefront, by May 23 and May 24, respectively.
Joseph Edwards, head of research at Enigma Securities, referenced reports indicating that the SEC had requested updates to the filings from exchanges that would list the ether ETFs. Additionally, separate research from Bloomberg on ETFs suggests that analysts have informally increased the likelihood of approval.
An SEC representative stated that the commission does not comment on specific filings.
“After the approval of the BTC ETF, the resistance to an ETH ETF seemed an unlikely stance for the SEC to maintain, unless they were prepared to more broadly question Ethereum’s status as a security. It appears that a decision has been made not to pursue that route,” Edwards commented.
The cryptocurrency market experienced another uptick last week, following reports of a deceleration in U.S. inflation, which sparked a broader rally in risk-sensitive assets.