Ethereum (ETH), the biggest altcoin, recorded a skyrocketing surge on Tuesday. The mega surge comes in over positive predictions coming out from the Bloomberg ETF analysts linked to the approval of spot ETH Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission (SEC).
Ethereum explodes 25% in a week
James Seyffart and Eric Balchunas of Bloomberg had raised their odds for approval to 75%, up from 25%. However, this is based on rumors that the SEC might reverse its stance on this issue.
Eric Balchunas, Senior ETF Analyst for Bloomberg in a post wrote that he and James Seyffart are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See Nate’s tweet below for probably order of events (but again we capping at 75% until we see more, eg filing updates).
Ethereum price jumped by a big 18% in the last 24 hours. This gain has helped ETH to go up by more than 25% over the past 7 days. Its 24 hour trading volume is up by 243% to stand at $37.8 billion. Ether is now holding a market cap of $440.5 billion.
Deadlines approaching
The SEC faces several critical deadlines this week regarding spot ETH ETF approvals or denials. The commission has postponed decisions multiple times. VanEck Ethereum ETF and ARK 21Shares ETH linked ETF have final deadlines of May 23 and May 24, respectively. However, Hashdex Nasdaq Ethereum ETF has a final deadline of May 30, while Grayscale Ethereum Trust has a deadline of June 23.
Approval of spot ETH ETFs can give out a major impact on the broader crypto market. The SEC’s past classification of ETH as a security adds weight to the potential approval. It suggests a major policy shift that could also reclassify other cryptos as commodities. This change could attract a new wave of institutional investments and enhance market credibility.
Bitcoin (BTC) price also saw an uptick of over 6% in the last 24 hours. BTC is trading at an average price of $70,954, at the press time. However, it went on to breach the $71k mark. Its 24 hour trading volume is up by 129% to stand at $52.4 billion. The biggest crypto is holding a market of $1.3 trillion.
