![Ether Jumps 20% on Renewed Optimism for an ETF, Bitcoin Also Rallies](https://cryptobite.xyz/images/jpg/5370-53336-baedf0fe-077c-4b60-880b-e6158998230f.jpg)
Ether Jumps 20% on Renewed Optimism for an ETF, Bitcoin Also Rallies
The price of ether continued to climb, after rocketing 20% on Monday. The rally comes amid a late surge in optimism that the SEC might greenlight spot ether ETFs ahead of its first deadline later this week.
Ethereum ETF approval could end the lull in crypto
Ether led the rally, rising 13% to $3,814.30, according to Coin Metrics, after rocketing 20% on Monday. “This sudden flip in expectations is an unexpected boon for crypto investors who have been crying out for a driver after the Bitcoin halving passed and Bitcoin ETFs were launched in the U.S. and Hong Kong,” said Antoni Trenchev, co-founder of crypto exchange Nexo. “If the spot ETH ETFs are approved, altcoins should take off as ether is often a leading indicator for the rest of the crypto market.”
“If the spot ETH ETFs are approved, altcoins should take off as ether is often a leading indicator for the rest of the crypto market.” - Antoni Trenchev, co-founder of crypto exchange Nexo.
Meanwhile, bitcoin was little changed, holding on to a 7% gain from the previous day that pushed it above $70,000 for the first time in more than a month. The flagship cryptocurrency has been rising since last week’s April CPI reading showed inflation eased from the previous month, which could open the door again to rate cuts in the U.S.
Crypto-related equities initially rode the wave of positivity but pulled back on Tuesday. Coinbase and Robinhood, plays on trading of cryptocurrencies broadly, were slightly lower after notching gains of 8% and 9%, respectively, in the previous session. MicroStrategy, which is more of a proxy for the price of bitcoin, fell 3%.
The ether rally began suddenly on Monday, amid reports that the SEC has requested key document updates from potential ETF issuers and exchanges. A spokesperson for the SEC said the agency doesn’t comment on individual filings.
Now, investors are reconsidering the likelihood that the SEC might greenlight spot ether ETF applications. The previous consensus was that the agency would not likely approve the funds, based on the lack of engagement by the agency on the filings. By contrast, in the weeks leading up to approvals for bitcoin ETFs, the SEC was reported to be engaging actively with fund issuers.
Final decisions on applications by VanEck and Ark Invest are due this Thursday and Friday, respectively. BlackRock, Fidelity, Invesco, Grayscale, and Bitwise Asset Management also have applications awaiting decisions this year.
An Ethereum ETF approval could end the lull in crypto, according to Trenchev. Bitcoin has been trading between $60,000 and $70,000 for several weeks, and investors and analysts had expected that trend to last another three to five months.
“Crypto’s been in a slumber since March, and we’re still in that sideways space. We need [bitcoin] to break through the record high before we can say categorically that we’ve broken out of the range.” - Antoni Trenchev, co-founder of crypto exchange Nexo.
“We need [bitcoin] to break through the record high before we can say categorically that we’ve broken out of the range,” he added. “Let’s not get too far ahead of ourselves. One month doesn’t make a summer. We’re in a data-centric market. If we get a hot CPI number or a really strong jobs report, you could see the lull continue.”
Bitcoin should rise on the coattails of Ethereum if we get an approval
“Bitcoin should rise on the coattails of Ethereum if we get an approval, but let’s not get too far ahead of ourselves,” he said. “One month doesn’t make a summer. We’re in a data-centric market. If we get a hot CPI number or a really strong jobs report, you could see the lull continue.”