The biggest altcoin, Ethereum saw a rapid price surge over the last 24 hours outpacing Bitcoin on the 7 days metrics. It is reported that ETH price jump is driven by emerging speculation around the potential approval of exchange-traded funds (ETFs) for the token in the United States. This major move has gained the attention of crypto investors.
Ethereum looks to take over Bitcoin gains
Ethereum recorded its biggest jump in over a month by rising approx 8.5% during US trading hours. ETH price went on to hit $3,722 which is still around 25% lower than its all time high of $4,891. However, this surge has added to Ether’s year-to-date gain of 62%, nearing Bitcoin’s 68% increase.
It is expected that the recent surge came in as traders and investors are speculating on the possibility of the US Securities and Exchange Commission (SEC) approving Ether linked ETFs. With this progress, investment giants like BlackRock and Fidelity have already submitted applications for such funds, but as we all know there are uncertainties about regulatory approval.
According to reports, the SEC has been cautious about approving ETFs tied to cryptocurrencies. The commission is arguing that most tokens could be considered unregistered securities. They have chosen to keep Bitcoin aside from this section. However, there has been an explicit identification of Ether as an unregistered security which would pose challenges for launching an ETF.
What is SEC up to?
It added that Bloomberg Intelligence ETF analysts have given a 75% chance of the SEC rejecting Ether ETF applications by May. They have even cited weak correlations between spot and futures markets as a major factor that is influencing the SEC’s decision.
Despite Ethereum’s recent rally, there are indications of skepticism in the options market. As of now traders are mainly selling short-term Bitcoin options and buying short-term Ether calls. This suggests uncertainty about the future price trends of both cryptos.
Data shows that Bitcoin’s options market is also showing interesting activity as high trades indicate bullish sentiment. This includes purchases of calls with high strike prices, including $200,000 strikes expiring next March.
Ethereum price is now up by more than 8% in the last 7 days while Bitcoin has managed to gain by 5.7%. ETH is trading at an average price of $3,645 at the press time. Its 24 hour trading volume is up by 96% to stand at $20.7 billion. Its market cap stands at around $438 billion.
