Today, the cryptocurrency Ether (Ether) continues to rise and is expected to record its biggest two-day rise in nearly two years. Meanwhile, Bitcoin is also close to record highs. This is mainly because market sentiment is optimistic, and it is believed that the US Securities and Exchange Commission (SEC) will approve an Ethereum spot ETF this week.
On Tuesday, Ethereum rose 8% to $3,775, the highest level in two months. On Monday, Ethereum was already up 20%. Meanwhile, Bitcoin rose 2.2% to $71,000, which is only 4% lower than the March high of $73,803.25.
This week, the SEC will rule on a number of spot Ethereum ETF applications. Analysts and investors said Tuesday's surge was due to unconfirmed rumors that the SEC might approve these products. Until then, investors generally believed that the SEC would not approve these products.
Bitcoin rose sharply earlier this year after the SEC approved several spot Bitcoin ETFs. Today, these ETFs have attracted billions of dollars in capital inflows. Bitcoin has risen 67% so far this year. Today, Ethereum is following suit, with a 60% increase.
Ben Laidler, a global market strategist at eToro, the world's largest community of traders and investors, said, “Ethereum is leading the way in the latest round of cryptocurrency gains until the SEC decides whether to approve the first deadline for an Ethereum ETF on Thursday.”
Laidler also stated, “Direct approval is unlikely, but providing any guidance on the way to final approval would be a big step forward.”
Vaneck, Ark Investment Management, and 7 other issuers have submitted applications to the SEC to list spot Ethereum ETFs. The SEC must decide on Vaneck's and ARK's applications by May 23 and May 24, respectively.
Joseph Edwards, head of research at digital asset brokerage firm Enigma Securities, quoted some media reports that the SEC has requested that exchanges listing Ethereum ETFs update their filing documents. Additionally, an ETF study also showed that analysts raised their approval expectations.
An SEC spokesperson declined to comment. Previously, the SEC had postponed the approval deadline in March.