Cryptocurrencies surge as investors turn bullish on ether ETFs

Ether was set to record its largest two-day gain in nearly two years on Tuesday fueled by speculation surrounding the outcome of applications for US spot exchange-traded funds (ETFs), which track the world’s second-biggest cryptocurrency, Reuters reported.

Ether rose 8 per cent to $3,775, its highest in two months, after jumping 13.8 per cent on Monday. Bitcoin also climbed 2.2 per cent to $71,000, nearing its March peak of $73,803.25.

The US Securities and Exchange Commission (SEC) is expected to rule on several spot ether ETF applications this week, which fueled the rally. The SEC’s approval of spot bitcoin ETFs earlier this year led to significant inflows, boosting bitcoin’s value by 67 per cent in 2024. Ether has gained 60 per cent so far this year.

Analysts, including Ben Laidler from eToro, noted that the upcoming SEC decision could be pivotal, even if outright approval is unlikely.

Joseph Edwards of Enigma Securities highlighted that the SEC had asked exchanges to update their ether ETF filings, increasing the likelihood of approval.

The SEC spokesperson declined to comment on specific filings. Crypto markets were further buoyed by recent US inflation data, which supported risk assets.