Stay informed with our newsletter.
.webp){kind=spacer}
EN
Investor optimism drives an uptick in cryptocurrency values, buoyed by the introduction of Ether ETFs. This surge reflects growing confidence among investors, particularly in the potential of Ethereum-based investments.
LONDON, May 21 (Reuters) - On Tuesday, Ether experienced its most substantial two-day increase in nearly two years, driven by speculation surrounding the approval of U.S. spot exchange-traded funds (ETFs) monitoring the world's second-largest cryptocurrency. Meanwhile, bitcoin also neared its all-time high. Ether, the backbone of the Ethereum blockchain network, surged by 8% to $3,775, marking its highest value in two months following a 13.8% surge on Monday.
The leading cryptocurrency, bitcoin, saw a 2.2% increase to $71,000, hovering approximately 4% below its March peak of $73,803.25. This week, the U.S. markets regulator is expected to deliver its decision on certain spot ether ETF applications. Analysts and investors attribute Tuesday's surge to unsubstantiated speculation suggesting that the U.S. Securities and Exchange Commission may approve these products, a departure from earlier expectations of rejection by investors.
Bitcoin experienced a significant rally earlier this year following the approval of various spot bitcoin ETFs by the SEC, attracting billions of dollars in investments. In 2024, bitcoin has surged by 67%, while ether, gaining momentum, closely trails with a 60% increase. Ben Laidler, a global markets strategist at eToro, noted that Ethereum has seized the lead in the recent crypto surge, particularly ahead of Thursday's pivotal SEC deadline for the decision on an ETH ETF.
While outright approval of spot ether ETFs appears unlikely, any indication of a pathway to eventual acceptance would mark significant progress. VanEck, ARK Investment Management, and seven other issuers have submitted filings with the SEC for spot ether ETF listings.
The SEC must rule on VanEck's and ARK's filings by May 23 and May 24, respectively. Joseph Edwards of Enigma Securities highlighted reports suggesting the SEC requested updates from exchanges planning to list the ether ETFs. Despite Bloomberg ETF research indicating increased probabilities of approval, an SEC spokesperson declined to comment on individual filings.
Edwards speculated that opposing an ether ETF after approving a bitcoin one would be contentious for the SEC unless it intended to address broader questions about Ethereum's securities status. Last week, crypto markets surged further amid data indicating a slowdown in U.S. inflation, prompting a rally in risk assets.
Source: Reuters
