(SQAUK) — The cryptocurrency market has seen a significant surge, with Ether leading amid speculation about an imminent approval for an Ether-based Exchange-Traded Fund (ETF). The anticipation has been growing as investors and enthusiasts alike speculate on the potential impact of this development on the broader market.
Ether, the native cryptocurrency of the Ethereum network, experienced a nearly 14% price surge in US trading, marking its most significant increase since November 2022. This momentum continued during Asian trading hours, with Ether trading at $3,666 in the morning in Singapore. Bitcoin also saw a substantial increase, nearing the $72,000 mark and approaching its mid-March all-time peak of almost $74,000.
The recent surge in the market seems to be driven by increasing optimism about the potential approval of spot exchange-traded funds. Bloomberg ETF analysts Eric Balchunas and James Seyffart have raised approval odds from 25% to 75%. This change is based on reports that the United States securities regulator is urging applicants to speed up their filings. As a result, there has been a sharp increase in open interest in Ethereum futures, reaching a record high of $15.1 billion.
Approving an Ether ETF could have significant implications for the cryptocurrency market. It would validate Ether as an investment vehicle and potentially attract a new wave of institutional investors. The market is closely watching the U.S. Securities and Exchange Commission’s decision on VanEck’s spot Ether ETF application, which is due May 23.
Recent speculation has brought optimism to the market, which had been going through a period of consolidation. The possibility of an Ether ETF is viewed as a positive move towards the widespread acceptance of cryptocurrencies. However, investors are still cautious, knowing that the S.E.C. ‘s decision could swing in either direction.
As the market awaits S.E.C.’s decision, the price of Ether and other cryptocurrencies will likely continue to reflect investors’ sentiment and speculation. The possibility of an ETF approval represents a pivotal moment for the cryptocurrency industry that could shape the trajectory of digital assets for years to come.
