Ethereum Soars as Speculation Swirls: What’s Driving the Surge?

LONDON (Reuters) – Ether Sees Significant Gains Amid ETF Speculation

ETF Hopes Boost Ether and Bitcoin Prices

Ethereum’s cryptocurrency ether experienced its largest two-day gain in nearly two years on Tuesday, reaching $3,775, its highest in two months, after surging 13.8% the day before. Bitcoin also neared a record high, climbing 2.2% to $71,000, just 4% below its peak in March.

SEC Decision on Ether ETF Applications Fuels Market Excitement

Speculation about the approval of U.S. spot exchange-traded funds (ETFs) for ether by the Securities and Exchange Commission (SEC) drove the market frenzy. With the SEC set to rule on several applications this week, investors eagerly anticipate the outcome. The approval of spot bitcoin ETFs earlier this year spurred a similar surge in the market, attracting billions in inflows.

Analysts Predict Strong Growth for Cryptocurrency Market

While bitcoin has gained 67% this year, ether is quickly catching up with a 60% increase. Analysts foresee a further uptrend in the cryptocurrency market, with the possibility of ETF approval signaling a positive trajectory for ether.

The Road Ahead for Ether ETF Approval

Several issuers, including VanEck and ARK Investment Management, have filed for spot ether ETFs, with the SEC’s decision on VanEck’s and ARK’s applications expected by May 23 and May 24, respectively. Reports suggest that exchanges listing the ether ETF have updated their filings, leading to increased probabilities of approval.

Crypto Market Boom Continues Amid Economic Data

The recent uptick in the crypto market follows a rally in risk assets fueled by a slowdown in U.S. inflation data. Despite market fluctuations, the optimism surrounding ether and bitcoin remains strong, with potential ETF approvals driving increased market activity.

Correction Notice: Important Updates to the Story

This article is revised to correct errors in the original text regarding the day and regulator mentioned in the original paragraphs. The focus remains on the exciting developments in the cryptocurrency market and the potential impact of ETF approvals on ether and bitcoin prices.