Ether ETFs: The Latest Trend in Cryptocurrency Investing
Ether experienced its largest two-day gain in nearly two years on Tuesday, driven by speculation about the approval of U.S. spot exchange-traded funds (ETFs) that track the cryptocurrency. Bitcoin also approached a record high.
Ether, which powers the ethereum blockchain network, reached $3,775, its highest in two months, after rising by 13.8% on Monday, marking an 8% gain on the day. Bitcoin was last up 2.2% at $71,000, approximately 4% shy of its March peak of $73,803.25.
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The U.S. Securities and Exchange Commission (SEC) is expected to rule on some spot ether ETF applications this week. Tuesday’s surge was attributed to unconfirmed talk that the SEC might approve these products, contrary to previous expectations of rejection by investors.
Earlier this year, bitcoin experienced a significant rally following the SEC’s approval of several spot bitcoin ETFs, attracting billions of dollars in inflows. In 2024 so far, bitcoin has gained 67%, with ether closely following at a gain of 60%.
Ben Laidler, global markets strategist at eToro, commented, “Ethereum has taken pole position in the latest crypto rally ahead of Thursday’s first final SEC deadline to decide on an ETH ETF.” VanEck, ARK Investment Management, and seven other issuers have submitted filings with the SEC to list spot ether ETFs.
The SEC must decide on VanEck’s and ARK’s filings, which are first in line, by May 23 and May 24 respectively. An SEC spokesperson declined to comment on individual filings.
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Joseph Edwards, head of research at Enigma Securities, stated, “Opposing the ETH ETF after the BTC one was approved always seemed like an odd case for the SEC to try to push, unless they were willing to open up questions on Ethereum’s securities status more broadly, and it’s likely that the call has come in somewhere to not take that fight.”
Last week, crypto markets experienced another surge after data revealing a slowdown in U.S. inflation triggered a rally in risk assets.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
