Ether ETF Speculation Fuels Cryptocurrency Surge: Bitcoin and Ether Hit Multi-Month Highs
Cryptocurrency Surge on Ether ETF Speculation
The Cryptocurrency Surge market on Tuesday, with Bitcoin and Ether reaching their highest levels since April 9th, driven by speculation about a potential Ether exchange-traded fund (ETF). The US Securities and Exchange Commission (SEC) recently requested exchanges seeking to list Ether ETFs to update their regulatory filings, fueling optimism among investors that an Ether ETF approval might be imminent. This speculation led Bitcoin to rise over 6%, hitting $71,957, while Ether saw a more substantial jump of over 15%, reaching $3,720.80. As of midday Tuesday, Bitcoin was trading at $71,334.89 and Ethereum at $3,684.90, reflecting gains of 6.5% and 19.3%, respectively.
Analysts attribute Ether’s cryptocurrency surge to the nearing deadline for Ether ETF filings on May 23rd, with Bloomberg analyst Eric Balchunas increasing his approval probability from 25% to 75% after the SEC’s recent actions. Despite the unlikelihood of an immediate approval, the SEC’s positive stance has boosted market confidence, driving the current rally. This bullish sentiment has also benefited layer-2 protocols on the Ethereum network, such as ARB and OP, which saw gains exceeding 18% against USDT (Tether).
SEC’s Move Triggers Market Rally
A wave of optimism has swept through the cryptocurrency surge market, sending Bitcoin and Ether prices soaring to their highest points since mid-April. This surge can be traced to a recent action by the US Securities and Exchange Commission (SEC), igniting hopes for a potential Ether exchange-traded fund (ETF). The SEC’s request for cryptocurrency surge exchanges to update their filings for Ether ETFs has been interpreted as a sign of increased receptiveness to the idea, shifting investor sentiment dramatically.
The market reacted swiftly, with Bitcoin prices jumping over 6% to $71,957 and Ether prices rising more than 15% to $3,720.80, highlighting Ether’s outperformance compared to Bitcoin. Analysts link Ether’s cryptocurrency surge to the approaching deadline for ETF filings on May 23rd, with Bloomberg analyst Eric Balchunas raising the approval probability from 25% to 75% following the SEC’s move. Although an immediate Ether ETF approval remains unlikely, the SEC’s positive stance has boosted market confidence, driving the current rally. This bullish momentum has extended to layer-2 protocols on the Ethereum blockchain, such as ARB and OP, which have seen gains exceeding 18% against USDT (Tether).
The tides have turned in the cryptocurrency surge market, with both Bitcoin and Ether experiencing a surge in value. However, Ether was the clear winner in this rally. Bitcoin managed a respectable 6% increase on international exchanges, reaching a high of $71,957. But Ether completely outshone its larger counterpart, witnessing a phenomenal jump of over 15%, peaking at $3,720.80. This marks a significant shift in performance compared to recent trends, where Bitcoin typically dominated the market. This impressive outperformance by Ether can likely be attributed to the speculation surrounding a potential Ether ETF approval.
Continuing the trend from earlier in the day, both Bitcoin and Ethereum maintained their strong positions at the time of writing (Tuesday, 12:42 PM IST). Bitcoin held steady at $71,334.89, which translates to a healthy increase of 6.5% compared to the previous day’s price. However, Ethereum continued to outperform Bitcoin significantly. Ethereum’s price remained buoyant at $3,684.90, reflecting a remarkable gain of nearly 19.3% within the last 24 hours. This substantial difference in price movement highlights the exceptional performance of Ethereum in this current market surge.
Why the Rise?
The recent surge in Ether’s price can be primarily attributed to the upcoming deadline for Ether ETF filings, set for May 23rd. This deadline has ignited a wave of optimism in the market, as it suggests potential approval for an Ether ETF could be on the horizon.
Previously, analysts viewed an Ether ETF approval as a distant possibility. The US Securities and Exchange Commission (SEC) recently requested that cryptocurrency surge exchanges seeking to list Ether ETFs update their regulatory filings. This unexpected move by the SEC has been interpreted as a sign of a potentially more lenient stance towards Ether ETFs. Bloomberg analyst Eric Balchunas captured this shift in sentiment perfectly by revising his approval probability upwards. Initially, he placed the chances of approval at a mere 25%. But after the SEC’s request for updated filings, Balchunas significantly increased his estimate to a much more bullish 75%.
In essence, the market is reacting positively to the possibility of an Ether ETF being approved sooner than anticipated. This potential regulatory green light is seen as a major step forward for Ethereum, and it’s driving investor confidence in the cryptocurrency surge.
Positive SEC Action Ignites Market
Although an Ether ETF approval this week remains unlikely, the SEC’s seemingly positive stance has instilled confidence in the market, triggering the current rally.
Layer-2 Protocols Benefit from Ethereum’s Momentum
The bullish momentum surrounding Ethereum also impacted other commonly used layer-2 protocols built on the Ethereum blockchain network. Protocols like ARB and OP witnessed significant gains, exceeding 18% against USDT (Tether).
Conclusion
The recent surge in Ether’s price underscores the market’s growing optimism about the potential approval of an Ether exchange-traded fund (ETF), driven by the upcoming filing deadline on May 23rd and the US Securities and Exchange Commission’s (SEC) unexpected request for updated regulatory filings. This development has led analysts, such as Bloomberg’s Eric Balchunas, to significantly raise their approval probabilities, reflecting a shift in sentiment towards a more favorable regulatory outlook. As a result, the cryptocurrency market, particularly Ether, is experiencing heightened investor confidence, suggesting that the approval of an Ether ETF could mark a significant milestone for Ethereum and the broader crypto ecosystem.
