Ether was poised for its largest two-day gain in nearly two years on Tuesday, fueled by speculation about the outcome of U.S. spot exchange-traded fund (ETF) applications tracking the world’s second-biggest cryptocurrency. Meanwhile, bitcoin also neared a record high.
Ether, which underpins the Ethereum blockchain network, surged 8% on the day to $3,775, its highest in two months, following a 13.8% jump on Monday.
Top cryptocurrency bitcoin rose 2.2% to $71,000, just 4% shy of its March peak of $73,803.25. The U.S. markets watchdog is expected to rule on several spot ether ETF applications this week.
Analysts and investors attributed Tuesday’s surge to unconfirmed rumors that the U.S. Securities and Exchange Commission (SEC) might approve these ETFs, contrary to earlier expectations of rejection.
Bitcoin experienced a sharp rally earlier this year after the SEC approved several spot bitcoin ETFs, which attracted billions in inflows.
So far in 2024, bitcoin has gained 67%, with ether close behind at a 60% gain.
VanEck, ARK Investment Management, and seven other issuers have filed 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.
Joseph Edwards, head of research at Enigma Securities, mentioned reports indicating the SEC had asked exchanges to update their ether ETF filings and noted separate Bloomberg research suggesting analysts have increased their informal probabilities of approval.
