Cryptocurrency Market Soars as Hopes Rise for Approval of Ether ETFs
Bitcoin and other cryptocurrencies were on the rise on Tuesday, with hopes soaring for the approval of a new class of exchange-traded funds tied to Ether. Bitcoin saw a 6.2% increase over the last 24 hours, reaching $70,964, while Ether, the second-largest crypto, surged by 19% to $3,667.
The surge in prices came as traders speculated on the potential approval of a spot Ether exchange-traded fund by the U.S. Securities and Exchange Commission (SEC). Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, raised the odds of the SEC approving the ETF to 75% from 25%. The agency faces a final deadline on May 23 to make a decision on an application by VanEck for changes that would allow the launch of an ETF holding spot Ether.
Despite the progress, there is no guarantee that the ETFs will launch on May 23 or soon after, as S-1 registration statements also need approval for an Ethereum spot ETF to launch, which could take weeks or months. It remains to be seen whether the rise in prices will be sustained, as Bitcoin hit a record high near $74,000 in mid-March but has since dropped in price.
In addition to Bitcoin and Ether, smaller cryptocurrencies like Cardano, Polygon, and Dogecoin were also on the rise, with gains ranging from 7.5% to 8.0%. The cryptocurrency market continues to be volatile, with investors closely watching for any developments related to ETF approvals and regulatory changes.
For more updates on the cryptocurrency market, readers can contact Adam Clark at adam.clark@barrons.com.
