Ethereum and Bitcoin prices surge

Ether was set for its most crucial two-day increase in nearly two years, and Bitcoin approached a record high on Tuesday, based on belief about the outcome of applications for U.S. spot exchange-traded funds that track the planet’s second-biggest cryptocurrency.

The value of Ether, the cryptocurrency that underpins the Ethereum blockchain network, experienced a notable surge, rising by 4.4% to reach $3,650, following a significant 13.7% jump on the preceding Tuesday. 

Meanwhile, Bitcoin, the leading cryptocurrency, saw a 2% increase, reaching $70,850, coming close to its March peak of $73,803.25.

Anticipation Surrounding SEC Ruling

Market analysts and investors are closely monitoring the U.S. Securities and Exchange Commission’s (SEC) impending decision on several spot Ether ETF (Exchange-Traded Fund) applications. 

Tuesday’s surge in Ether’s price was fueled by unconfirmed speculation suggesting the possibility of the SEC approving these products, contrary to previous expectations of rejection.

Notably, Bitcoin experienced a similar rally earlier this year when the SEC approved several spot Bitcoin ETFs, resulting in substantial inflows of funds into the market.

Year-to-Date Performance

In 2024, Bitcoin has seen a robust gain of 67%, while Ether closely trails behind with a 60% increase in value. The recent rally in Ether’s price reflects its leading position in the current cryptocurrency surge, particularly ahead of the SEC’s looming decision on the proposed Ether ETFs.

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Market Sentiment and Analyst Insights

Ben Laidler, global markets strategist at eToro, emphasized Ethereum’s significant role in the latest crypto rally, particularly in anticipation of the SEC’s decision on the first final deadline for an ETH ETF on Thursday. 

While outright approval is considered unlikely, any indication of a potential pathway to eventual acceptance would mark a significant milestone for the cryptocurrency market.

Several prominent issuers, including VanEck and ARK Investment Management, have submitted applications to the SEC to list spot Ether ETFs. The SEC is expected to make decisions on VanEck’s and ARK’s filings by May 23 and May 24, respectively. 

Joseph Edwards, head of research at Enigma Securities, highlighted reports suggesting that the SEC has requested exchanges to update their filings and provided Bloomberg ETF research indicating raised probabilities of approval, further fueling market speculation and anticipation surrounding the SEC’s decision.