LONDON (Reuters) – Ether was headed for its biggest two-day gain in almost two years on Tuesday amid speculation over the outcome of filings for U.S. spot exchange-traded funds that track the world's second-largest cryptocurrency. , while bitcoin also approached a record. high.
Ether, which underpins the Ethereum blockchain network, rose 8% that day to $3,775, its highest level in two months, after jumping 13.8% on Tuesday.
Bitcoin, the top cryptocurrency, was last up 2.2% at $71,000, about 4% off its March high of $73,803.25.
The US markets watchdog will rule on some spot ether ETF applications this week. Analysts and investors said Tuesday's jump was the result of unconfirmed rumors that the Securities and Futures Commission could approve these products, after investors had previously thought they would be rejected.
rebounded sharply earlier this year after the SEC approved several spot bitcoin ETFs, which have received billions of dollars in inflows.
So far in 2024, bitcoin has gained 67%, but ether is now close behind, with a 60% gain.
“It has taken the lead in the latest cryptocurrency rally ahead of Thursday's first SEC deadline to decide on an ETH ETF,” said Ben Laidler, global markets strategist at eToro, using the market symbol. of ether.
“Full approval is a long shot, but any guidance on the path to eventual acceptance would be a big step forward.”
VanEck, ARK Investment Management and seven other issuers have filed with the SEC to list spot ether ETFs. The SEC must decide on the filings from VanEck and ARK, which are first in line, by May 23 and 24 respectively.
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 analysts had raised their informal odds. of approval.
An SEC spokesperson said they did not comment on individual filings.
“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 about the state of Ethereum securities more broadly, and it's likely that the call came from somewhere. not take that fight,” Edwards said.
Crypto markets rose another leg last week, after data showing a slowdown in US inflation fueled a rally in risk assets.
