Crypto prices have surged on signs of momentum toward US approval of exchange-traded funds investing directly in the second-largest token Ether, marking a significant shift from a more pessimistic outlook just last week.
The speculation surrounding spot-Ether ETFs has sparked investor enthusiasm reminiscent of the excitement that accompanied the listing of US Bitcoin funds in January, which led to a rally in the largest digital asset to a record high.
Ether saw a nearly 14% increase in US trading, the most significant jump since November 2022, before continuing to climb in Asian hours to reach $3,666 as of 9:33 a.m. in Singapore on Tuesday. Bitcoin also made gains, nearing $72,000 and approaching its mid-March peak of nearly $74,000.
The US Securities & Exchange Commission has reportedly reached out to at least one exchange and one potential spot-Ether ETF issuer to update necessary filings, indicating a potential increase in the likelihood of SEC approval. However, a final decision is not guaranteed, according to sources familiar with the matter.
The excitement surrounding the possibility of approval has led to a flurry of activity among traders, with many rushing to take positions after previously dismissing the idea of approval as remote.
If approved, a spot-Ether ETF would open up new opportunities for investors to access the Ethereum blockchain, a key player in the world of decentralized finance. The network is known for its innovative financial services that operate without traditional intermediaries.
With the estimated probability of approval for a spot-Ether ETF now at 75%, according to Bloomberg Intelligence analysts, the crypto market is eagerly awaiting the SEC’s decision, which is expected by May 23.