- Ether was set for its largest two-day gain in nearly two years on Tuesday amid speculation about the outcome of applications for U.S. spot exchange-traded funds that track the cryptocurrency
- The U.S. Securities and Exchange Commission will give its ruling on some spot ether ETF applications this week, and analysts and investors said Tuesday’s jump was due to unconfirmed talk that the SEC might approve these products
- Bitcoin also rallied, rising 2.2% to around $71,000, close to its March peak of $73,803.25, as crypto markets took another leg higher after data showing a slowdown in U.S. inflation drove a rally in risk assets
Ether and bitcoin prices have jumped sharply in recent days as investors grow more optimistic about the prospects for U.S. exchange-traded funds (ETFs) tracking the cryptocurrencies.
Ether Leads Crypto Rally
Ether, the native token of the Ethereum blockchain, has outpaced bitcoin in gains over the past two days. It rose 13.8% on Monday and another 8% on Tuesday to hit its highest level in two months.
The price surge comes ahead of a key deadline this week for the U.S. Securities and Exchange Commission (SEC) to approve or reject proposals for ether ETFs. Several asset managers, including VanEck and ARK Investment Management, have applications pending with the regulator.
Analysts say ether’s rally is being fueled by speculation that the SEC could approve some of these ETFs, despite most investors previously believing they would be rejected. This would open up exposure to ether to a wide range of retail and institutional investors.
Bitcoin Also Nears Record High
Bitcoin, the largest cryptocurrency by market capitalization, has also seen strong gains in recent days. It was up 2.2% on Tuesday to around $71,000 – just 4% below its all-time high from March.
Bitcoin has surged over 60% so far this year after the SEC approved the first spot bitcoin ETFs in 2021. Those ETFs quickly attracted billions of dollars in assets under management.
Crypto Market Sentiment Improves
The wider cryptocurrency market has also benefited from improved risk appetite over the past week. Recent data showed inflation slowing in the U.S., driving a rally across risk assets like stocks.
Crypto analysts say ether ETF approvals could provide a significant boost to the market if the SEC gives the green light this week. Even if the proposals are rejected, clearer guidance from the regulator on a pathway to acceptance in the future would be a positive development.
