Ethereum, the second-largest digital asset globally, has experienced an 8% surge in the past 24 hours, outperforming Bitcoin.
Recent reports by Bloomberg suggest that this spike might be linked to rumors circulating about potential approval of U.S. exchange-traded funds (ETFs) for Ethereum.
Edward Chin, co-founder of digital-asset hedge fund Parataxis Capital, noted discussions among Ether ETF issuers and the U.S. Securities and Exchange Commission (SEC).
Major financial players like BlackRock Inc. and Fidelity Investments have filed for Ethereum ETFs, though regulatory approval remains uncertain.
Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas predict a 75% chance of the SEC denying Ethereum applications by May, citing data showing weak correlations between spot and futures markets.
Ethereum is currently trading at $3,690.58, reflecting a 7.57% increase in the last 24 hours, while Bitcoin rose 1.72% during the same period. Over the past 5 days, Ether has surged by 10.74%, according to Benzinga Pro.
This recent Ethereum rally follows a period of market uncertainty, with Bitcoin and Ethereum dipping below key support levels earlier this month, hinting at a potential shift in market sentiment.
Despite this, people are optimistic about Ethereum ETF approvals, with Digital Finance Group CEO James Wo suggesting a “high likelihood” of approval. JPMorgan also remains hopeful about the SEC eventually approving spot Ethereum ETFs.
The speculation surrounding Ethereum ETFs has caused a surge in the Bitcoin-Ethereum ratio, indicating caution amidst the ongoing crypto rally.
