Crypto market surges on rumors of imminent SEC approval of spot ETH ETF
Crypto market surges on rumors of imminent SEC approval of spot ETH ETF
The excitement in the cryptocurrency market on Monday, sparked by rumors of a possible SEC approval of spot Ethereum ETFs, continued on Tuesday and led to a significant rise in the digital asset.
The price of Ethereum (ETH) jumped more than 20 percent to $3,710 in a matter of minutes, while the Arbitrum (ARB) and Optimism (OP) tokens gained 18 percent. The euphoria spread to other cryptocurrencies, including Solana (SOL), Avalanche (AVAX), and Uniswap (UNI).
The sudden surge began after two Bloomberg analysts, Eric Balchunas and James Seyffarth, published their prediction that the SEC could approve spot ETFs on Ethereum this week. Their updated odds were 75 percent, well above the previous estimate of 25 percent. Previously, other analysts had put the odds at 50-50.
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Now, the odds that the SEC will approve the Ethereum spot ETF before May 31 are 54%, up from 10% the day before. It's worth noting that the approval of Ethereum spot ETFs by the SEC has been repeatedly delayed. Markets fear that this week's deadline could prompt the regulator to declare Ethereum a security, which would dramatically change its status.
Meanwhile, cryptocurrency exchange Coinbase said it is considering creating an ETF on Ethereum if it is not approved on May 23, Decrypt reported.
Bitcoin (BTC), the largest cryptocurrency by capitalization, also saw significant gains, breaking through the psychological $70,000 level amid massive liquidation of short positions.
The positive market sentiment on May 20 contributed to all of the top 25 cryptocurrencies by market capitalization trading in the green by the evening.
At the time of writing, ETH is trading at $3,646.83, up 16.4% in the last 24 hours. The price of BTC is up 6.1% to $71,197.48.
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