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bounces to $70,000 on Investing.com Ether ETF spot speculation
Investing.com– The price of Bitcoin rose sharply on Tuesday, tracking a rally in Ether after a media report signaled some progress toward approving spot-Ether exchange-traded funds for U.S. markets.
It rose 5.8% over the past 24 hours to $70,987.1 as of 01:08 ET (0508 GMT).
On Tuesday, however, token no. 2 in the world was the star, rising 17% to a 1-1/2-month high of $3,656.01.
Ether Rises as Report Says SEC Asks ETF Applicants to Update Key Documents
A report from Coindesk showed that the US Securities and Exchange Commission has asked Ether spot ETF applicants to update some key documents, ahead of a key fund approval deadline this Thursday.
While the report said there is still no guarantee the regulator will approve ETFs, it did highlight some progress towards eventual approval.
Bloomberg analysts Eric Balchunas and James Seyffart upgraded their expectations for the Ether ETF’s spot approval to a 75% chance from 25%, citing the Coindesk report and saying the SEC could “do a 180” on a potential approval.
The SEC has been seen as largely opposed to a spot Ether ETF, especially since recent reports claim that the regulator was also taking action against the Foundation over Ether’s potential nature as a security.
But a spot ETF approval could trigger a similar rally in Ether as Bitcoin did in early 2024, where the token rose to a record high thanks to increased capital inflows as institutional investors piled into ETFs.
Crypto Price Today: Bitcoin Capital Flows Improve Amid Rate Speculation
Data from digital asset manager CoinShares showed on Monday that cryptocurrency investment products saw a second straight week of capital inflows, as some weak US inflation readings boosted bets on an interest rate cut by of the Federal Reserve this year.
Total capital inflows stood at $932 million in the week to May 20, with Bitcoin continuing to dominate capital flows. However, overall trading volumes remained well below the peaks seen in the aftermath of spot Bitcoin ETF approvals in February and March.
Altcoins rose, tracking Ether’s gains. rose 3.6%, while it added 3.7%.
Meme and tokens added 6.6% and 4.7%, respectively.