Bitcoin
Ether jumps 20% on renewed optimism for an ETF, bitcoin also rises
- The price of ether continued to rise, after spiking 20% on Monday.
- The rally comes amid a late surge in optimism that the SEC could give the green light to localizing ether ETFs before its first deadline later this week.
- The previous consensus was that such funds were unlikely to be approved.
Omar Marques | Light Rocket | Getty Images
Cryptocurrencies rose on Tuesday amid a late surge in optimism surrounding the U.S. Securities and Exchange Commission’s rulings on spot ether exchange-traded fund applications, the first of which will be released this week.
Ether led the rally, rising 11% to $3,744.43, according to Coin Metrics, after soaring 20% on Monday.
About that, Bitcoin added 2% and traded at around $71,350, extending a 7% gain from the previous day. The leading cryptocurrency has been rising since last week’s April CPI reading showed that inflation eased from the previous month, which could again open the door to rate cuts in the US. This week’s rally pushed bitcoin above $70,000 for the first time in more than a month.
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Ether Rebounds on ETF Optimism
Crypto-related stocks rode the wave. Coin base It is Robinhood each rose about 2% in premarket trading, adding to Monday’s gains of 8% and 9%, respectively. Microstrategy, a proxy for the price of bitcoin, added 1%. Bitcoin miners also gained slightly, with Riot Platforms It is Irene (formerly known as Iris Energy), each advancing 2%, and Digital Marathon It is CleanSpark each increasing by 1%.
Investors are reconsidering the likelihood of the SEC giving the green light to identify ether ETF applications amid reports that the SEC has requested updates to key documents from potential ETF issuers and exchanges. O previous consensus was that such funds were unlikely to be approved.
“ETH soared shortly after rumors began circulating that the SEC might approve spot ETH ETFs this week after all,” said Bartosz Lipiński, CEO of Cube Exchange.
“Just as with spot bitcoin ETFs being approved earlier For the year though, this strikes me as a ‘buy the rumor, sell the news’ situation and I imagine a recovery by this Thursday… and then at least a brief sell-off, regardless of whether the funds are approved or not, ” he added.
An SEC spokesperson said the agency does not comment on individual filings.
Final decisions on VanEck and Ark Invest’s applications will be released this Thursday and Friday, respectively.
BlackRock, Fidelity, Invesco, Grayscale and Bitwise Asset Management also have applications awaiting decision this year.