Markets
Ether jumps 20% on renewed ETF optimism
- The price of ether continued to rise, after rising 20% on Monday.
- The rally comes amid a late burst of optimism that the SEC could give the green light to ether ETFs before its first deadline later this week.
- The previous consensus was that the funds would likely not be approved.
Omar Marques | Light flare | Getty Images
Cryptocurrencies rose Tuesday amid late optimism over U.S. Securities and Exchange Commission decisions on spot exchange-traded fund applications for ether, the first of which is expected this week.
Ether led the rally, up 10% to $3,733.50, according to Coin Metrics. Previously, it reached $3,835.43. On Monday, it climbed 20%.
“This sudden reversal of expectations is an unexpected boon for [crypto] investors who asked for a driver after the [Bitcoin] reduce by half “If spot ETH ETFs are approved, altcoins should take off as ether is often a leading indicator for the rest of the crypto market.
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Ether rallies on ETF optimism
The rally began suddenly on Monday, in the middle reports that the SEC has requested key document updates from potential ETF issuers and exchanges. An SEC spokesperson said the agency does not comment on individual filings.
Now, investors are reconsidering the likelihood of the SEC greenlighting Ether ETF applications. THE previous consensus was that the agency would likely not approve the funds, due to the agency’s lack of commitment on the deposits. In contrast, in the weeks leading up to the approval of Bitcoin ETFs, the SEC reportedly actively collaborated with fund issuers.
Final decisions on the applications of VanEck and Ark Invest are expected on Thursday and Friday, respectively. BlackRock, Fidelity, Invesco, Grayscale and Bitwise Asset Management also have applications awaiting decisions this year.
Ether Futures ETF hit the US market for the first time in Octoberjust a few weeks after court ruled against the SEC in a landmark case brought by Grayscale which paved the way for spot bitcoin ETFs and perhaps set a precedent for spot ether ETFs. The court said the SEC’s denial of Grayscale’s proposal to convert its popular Bitcoin Trust into an ETF was “arbitrary and capricious,” and that the agency failed to adequately explain why it approved the listing of two Bitcoin futures exchange-traded products (ETPs), but not the bitcoin ETP offered by Grayscale.
Bitcoin slows down
As the ether charged for a second day, bitcoin and crypto stocks remained behind. The flagship cryptocurrency was little changed on Tuesday, maintaining a 7% gain from the previous day, which propelled it above $70,000 for the first time in over a month. Bitcoin has been up since last week’s April CPI reading showed inflation reduced compared to the previous monthwhich could once again open the door to rate cuts in the United States
Crypto-related stocks initially rode the wave of positivity, but also pulled back on Tuesday. Coinbase And Robin Hoodplays on cryptocurrency trading in general, has been oscillating in a flat line after posting gains of 8% and 9%, respectively, in the previous session. MicroStrategywhich is more of an indicator of the price of bitcoin, fell 3%.
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Bitcoin initially surged with ether on Monday, but has since pulled back
According to Trenchev, the approval of Ethereum ETF could end the lull in the crypto space. Bitcoin has been trading between $60,000 and $70,000 for several weeks, and investors and analysts have been expecting this trend. last another three to five months.
“Crypto has been dormant since March, and we’re still in this sideways space,” he said. “We need [bitcoin] break the record before we can categorically say we are out of range. »
“Bitcoin should rise in the wake of Ethereum if we get a [ETF] approval, but let’s not go too far,” he added. “A month doesn’t make a summer. We are in a data-centric market. If we get a good CPI number or a really strong jobs report, you could see the lull continue. »