- Ether rose 13.8% on Monday and 8% on Tuesday, reaching $3,775, its highest in two months.
- Speculation about the U.S. SEC’s potential approval of spot ether ETFs drove the surge, with a decision expected this week.
- Bitcoin also gained 2.2%, nearing its March peak, following significant inflows into spot bitcoin ETFs approved earlier this year.
Ether surged to its highest in two months amid speculation that the U.S. Securities and Exchange Commission might approve spot exchange-traded funds for the cryptocurrency.
Ether surges on speculation of spot ETF approval
Ether was poised for its largest two-day increase in nearly two years on Tuesday, driven by speculation regarding the approval of U.S. spot exchange-traded funds (ETFs) for the second-largest cryptocurrency. Meanwhile, bitcoin also neared a record high.
Ether, which supports the Ethereum blockchain network, surged 8% to $3,775, its highest level in two months, following a 13.8% jump on Monday.
Bitcoin, the leading cryptocurrency, rose 2.2% to $71,000, approximately 4% below its March peak of $73,803.25.
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Investors await SEC decision on ether ETF applications
The U.S. markets regulator is expected to announce its decision on several spot ether ETF applications this week. Analysts and investors attribute Tuesday’s surge to rumours that the U.S. Securities and Exchange Commission might approve these ETFs, contrary to prior expectations of rejection.
Earlier this year, bitcoin experienced a sharp rally after the SEC approved several spot bitcoin ETFs, attracting billions of dollars in investments. In 2024, bitcoin has risen by 67%, while ether is catching up with a 60% increase.
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Analysts and market strategists express cautious optimism
“Ethereum has taken pole position in the latest crypto rally ahead of Thursday’s first final SEC deadline to decide on an ETH ETF,” said Ben Laidler, global markets strategist at eToro.
“Outright approval is a long shot, but any guidance on a pathway to eventual acceptance would be a big step forward.”
Joseph Edwards, head of research at Enigma Securities, mentioned reports indicating that the SEC had requested exchanges planning to list the ether ETF to update their filings. Additionally, separate Bloomberg ETF research revealed that analysts have increased their informal probabilities of approval.
