Bitcoin
Ether Jumps Over 20% in Two Days on Renewed Optimism for an ETF
Omar Marques | Light Rocket | Getty Images
Cryptocurrencies rose on Tuesday amid a late surge in optimism surrounding U.S. Securities and Exchange Commission decisions on spot ether exchange-traded fund applications, the first of which is expected this week.
Ether led the rally, rising more than 20% in two days to $3,710.31, according to Coin Metrics. It previously rose to $3,835.43.
“This sudden change in expectations is an unexpected benefit for [crypto] investors clamoring for a driver after the [Bitcoin] reduce by half have been approved and bitcoin ETFs have been launched in the US and Hong Kong,” said Antoni Trenchev, co-founder of cryptocurrency exchange Nexo. “If spot ETH ETFs are approved, altcoins should take off, as ether is often a important indicator for the rest of the crypto market.”
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Ether Rebounds on ETF Optimism
The demonstration began suddenly on Monday, in the middle of reports that the SEC has requested updates to important documents from potential ETF issuers and exchanges. An SEC spokesperson said the agency does not comment on individual filings.
Now, investors are considering the chances of the SEC greenlighting ether ETF applications. O previous consensus was that the agency was unlikely to approve the funds, based on the agency’s lack of involvement in the records. On the other hand, in the weeks leading up to approvals for bitcoin ETFs, it was reported that the SEC was actively engaging with fund issuers.
Final decisions on VanEck and Ark Invest’s applications will be released this Thursday and Friday, respectively. BlackRock, Fidelity, Invesco, Grayscale and Bitwise Asset Management also have applications awaiting decision this year.
Ether Futures ETFs first hit the US market in Octoberjust a few weeks after the courts ruled against the SEC in a landmark case brought by Grayscale which paved the way for spot bitcoin ETFs and may have set a precedent for spot ether ETFs.
The court said the SEC’s denial of Grayscale’s proposal to convert its popular bitcoin fund 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. bitcoin, or ETPs, but not Grayscale’s proposed bitcoin ETP.
Bitcoin hits the brakes
As the ether recovered for the second day, Bitcoin and crypto stocks lagged. The top cryptocurrency was little changed on Tuesday, maintaining a 7% gain from the previous day that pushed it above $70,000 for the first time in more than a month. Bitcoin has been rising from last week’s April CPI reading showed inflation eased compared to the previous monthwhich could once again open the door to lower interest rates in the US
Crypto-related stocks initially rode the bullish wave but also retreated on Tuesday. Coin base It is RobinhoodBoth plays in cryptocurrency trading remained little changed, building on gains of 8% and 9%, respectively, from the previous session. Microstrategywhich is more of a proxy for the price of bitcoin, fell 4%.
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Bitcoin initially jumped with ether on Monday but has since retreated
An approval of the Ethereum ETF could end the lull in crypto, according to Trenchev. Bitcoin has been trading between $60,000 and $70,000 for several weeks now, and investors and analysts have been expecting this trend last another three to five months.
“Crypto has been dormant since March and we are still in this sideways space,” he said. “We need [bitcoin] break the record before we can categorically say we’ve gone off track.”
“Bitcoin should rise in the wake of Ethereum if we can achieve a [ETF] approval, but let’s not get too hasty,” he added. “One month doesn’t make summer. We are in a data-centric market. If we get a hot CPI number or a really strong jobs report, you could see the lull continue.”