Ethereum Price Surge Fueled by the potential ETF approval

Ethereum ($ETH), the second-largest cryptocurrency, experienced a significant price increase of more than 16% yesterday.

This surge is fueled by speculation that US regulators may approve stock market funds investing in ETH.

Yesterday, Bloomberg ETF analyst Eric Balchunas increased the likelihood of a spot Ethereum ETF approval from 25% to 75%.

The Securities and Exchange Commission (SEC) has been closely watched regarding its decision on the first ether exchange-traded fund (ETF). Many traders expected a delay or rejection, but the recent price rise indicates optimism.

The SEC is set to make a decision on VanEck’s proposed ether exchange-traded fund (ETF) on May 23, with Ark’s decision following on May 24.

The approval of bitcoin ETFs earlier this year contributed to the growth of the crypto market.

Bitcoin’s spot ETFs attracted substantial investments and played a role in driving its price to an all-time high of over $73,000.

Media reports suggest that issuers of spot ether ETFs have been asked by the SEC to submit amended applications. Ether reached a six-week high of $3,700 in response to this news.

While the initial decisions on ether ETFs are due soon, it doesn’t guarantee immediate trading availability for investors. The second, final stage of approval remains uncertain.

The political dynamics around cryptocurrencies in Washington are shifting.

Recent events, including former President Donald Trump’s engagement with crypto enthusiasts and the reversal of a controversial accounting rule, indicate a potential change in the anti-crypto stance.

In summary, the crypto market is closely monitoring the SEC’s decisions, and the landscape continues to evolve.

The approval or denial of ether ETFs could have significant implications for investors and the broader market.