Ethereum (ETH), the world’s second-largest cryptocurrency, experienced a significant price surge, reaching a two-month high of $3,824, following rumors that the U.S. Securities and Exchange Commission (SEC) may soon approve spot Ether exchange-traded funds (ETFs).
The news sparked a bullish sentiment in the cryptocurrency market, with Ethereum’s price increasing by over 22% within a few hours and the overall digital asset market gaining 7.5%, reaching a market cap of $2.6 trillion with a 130% increase in trading volumes.
Ether Hits 2-Week High Amid Spot ETF Speculation
The cryptocurrency market showed significant gains, with Ethereum’s price surging by 21.93% to $3,796.83, Bitcoin (BTC) hitting $70,338.38, and other altcoins like Dogecoin (DOGE) and Cardano (ADA) also rising.
Reports suggesting the SEC might approve Ether ETFs soon contributed to the price surge, with Ether’s price rising by 24.50% to around $3,790, the highest level in two months.
Why is the Ether Price Soaring?
The primary reason behind Ethereum’s significant price increase is the growing speculation about the SEC nearing approval for spot Ether ETFs.
Two main factors drove Ether’s recent price surge: increasing chances of U.S. approval for a spot Ethereum ETF and a DOJ indictment reducing the likelihood of ETH being classified as a security. The SEC’s reported engagement with cryptocurrency exchanges and ETF issuers to update their filings has significantly raised investor confidence.
At the same time, a sharp increase in Ether Futures open interest and funding rates indicated growing investor interest and bullish sentiment towards Ethereum.
Do you think we could see a Bitcoin-like rally with Ethereum if spot ETFs are approved? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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