LONDON (Reuters) – Ether was set to post its biggest two-day gain in almost two years on Tuesday, amid speculation over the outcome of applications for U.S. spot exchange-traded funds that track the world’s second-largest cryptocurrency, while bitcoin also neared a record. high.
Ether, which powers the ethereal blockchain network, was up 8% on the day at $3,775, the highest in two months, after rising 13.8% on Monday.
Top cryptocurrency Bitcoin last rose 2.2% to $71,000, down about 4% from its March peak of $73,803.25.
The American market watchdog will rule this week on some spot ether ETF applications. Analysts and investors said Tuesday’s jump was the result of unconfirmed rumors that the U.S. Securities and Exchange Commission could approve these products, after investors previously thought they would be rejected.
rose sharply earlier this year after the SEC approved several spot bitcoin ETFs, which have seen billions of dollars in inflows.
So far in 2024, bitcoin is up 67%, but ether is now close behind, with a 60% gain.
“has taken the 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, using ether’s market ticker.
“Full approval is a long shot, but any guidance toward eventual acceptance would be a major step forward.”
VanEck, ARK Investment Management and seven other issuers have filed with the SEC to launch spot ether ETFs. The SEC must decide on the filings of VanEck and ARK, who are first in line, by May 23 and 24.
Joseph Edwards, head of research at Enigma Securities, cited reports that the SEC had asked exchanges that would list the ether ETF to update their filings and separate Bloomberg ETF research showing that analysts have increased their informal likelihood of approval.
An SEC spokesperson said they did not comment on individual filings.
“The backlash against the ETH ETF after BTC’s was approved always seemed like an odd case for the SEC to try to push through unless they were willing to ask questions about Ethereum’s securities status more broadly, and it’s likely that the call came in somewhere. to not take that fight,” Edwards said.
Crypto markets rallied again last week after data showing a slowdown in US inflation sparked a rally in risk assets.
(This story has been corrected to record the day in paragraph 2 and the full name of the regulator in paragraph 9)
