Cryptocurrencies saw a surge on Tuesday driven by growing optimism surrounding the U.S. Securities and Exchange Commission’s upcoming decisions on spot ether exchange-traded fund (ETF) applications. The market excitement was particularly evident as the first decision on an ether ETF is expected this week.
Leading the rally was Ether, the native cryptocurrency of the Ethereum network, which witnessed a notable 9% increase to reach $3,680.98, according to data from Coin Metrics. Notably, Ether had rocketed by an impressive 20% the day before, further fueling market sentiment.
While Ether took the spotlight, Bitcoin also experienced a positive trajectory with a 2% gain, hovering around the $71,350 mark. This uptrend followed an 8% increase from the previous day when Bitcoin successfully reclaimed the $70,000 level.
Additionally, various crypto-related equities capitalized on the market momentum. Companies like Coinbase, Microstrategy, and Robinhood all witnessed gains in extended trading, with Bitcoin mining stocks such as Marathon Digital, Riot Platforms, Iren (formerly known as Iris Energy), and CleanSpark experiencing notable surges of 3%.
Investor sentiment is shifting as there are indications that the SEC might approve spot ether ETF applications. Reports suggest that the SEC has requested updates on key documents from potential ETF issuers and exchanges, leading to a reassessment of the likelihood of approval. Previously, the consensus was that such funds would not receive regulatory approval.
Bartosz LipiÅ„ski, CEO at Cube Exchange, commented on the market dynamics, mentioning the potential impact of rumors surrounding the possible approval of spot Ether ETFs by the SEC. LipiÅ„ski emphasized the common pattern of “buy the rumor, sell the news” in the cryptocurrency market, predicting a period of rally followed by a likely sell-off post-decision approval.
Notable ETF applications from VanEck and Ark Invest are awaiting final decisions on Thursday and Friday, respectively. Other prominent financial institutions, including BlackRock, Fidelity, Invesco, Grayscale, and Bitwise Asset Management, also have pending ETF applications awaiting regulatory decisions later this year.
