Ethereum, the second-largest cryptocurrency in the world, has experienced a significant surge in value, with an 18% increase in the past 24 hours. This rise is driven by growing optimism surrounding the approval of a spot Ethereum ETF.
The current value of Ethereum stands at $3,669.88, showing a 0.3% increase in the last hour and an impressive 18.1% surge since yesterday. Compared to its value a week ago, Ethereum’s current value is 25.9% higher. The trading volume of Ethereum in the past 24 hours has reached an impressive $36,238,466,706.
The possibility of Ethereum ETF approval is causing excitement in the market. On May 20, Ethereum’s price increased by more than 18% following a prediction by Eric Balchunas, a senior analyst at Bloomberg, that it could increase by 25% to 75%. Balchunas noted that the United States SEC may be subject to political pressure due to its previous lack of engagement with ETF registrants.
In addition, the SEC is reportedly requesting exchanges like the NYSE and Nasdaq to update their filings. Nate Geraci, president of the ETF Store and co-founder of the ETF Institute, suggests that the final decision is still pending, and the exchange rule modifications (19b-4s) may be sanctioned separately from the fund registration (S-1).
Due to the complexity and potential risks associated with proof-of-stake (PoS) cryptocurrencies, the regulatory body is given an extended period to verify and approve the necessary documents.
A decision regarding the VanEck spot Ethereum ETF is expected to be announced on May 23, which may result in ongoing price fluctuations. A positive development could significantly boost the price of Ethereum, potentially pushing it to $4,000 or even higher.
There has been a notable increase in activity from major players in the Ethereum market, with a massive acquisition of 110,000 ETH worth $341 million in the past 24 hours. Additionally, the ETH/BTC pair has seen a significant increase, even amidst Bitcoin’s strong rally, leading some market participants to swap their Bitcoins for Ethereum.
The upcoming decision on Ethereum ETFs has also sparked attention towards the expiration of weekly and monthly ETH options. Deribit has recorded an open interest of $867 million for Ether options on May 24, jumping to an impressive $3.22 billion for May 31. In contrast, CME’s monthly open interest for ETH options is only $259 million, and OKX has $229 million.
There has been speculation about President Biden’s stance on cryptocurrencies, with some expecting him to moderate his position before the election. The recent development regarding the Ethereum ETF is seen as a potential sign of this expected transition. Analysts predict that Biden’s administration may adopt a more lenient stance or even reverse the current policies to avoid alienating potential voters in a contentious election. This shift comes after Trump openly expressed support for crypto.
However, some argue that the administration’s position on cryptocurrencies may be more explicitly communicated by Gary Gensler’s successor before his tenure concludes in 2025.
In conclusion, Ethereum’s price surge is driven by optimism surrounding the approval of a spot Ethereum ETF. The upcoming decision on the VanEck ETF and potential changes in the Biden administration’s stance on cryptocurrencies are expected to have a significant impact on Ethereum’s price in the near future.