Ethereum, the world’s second-largest cryptocurrency, experienced a significant surge in value, rising by 18% in the past 24 hours. This increase is driven by growing optimism surrounding the approval of a spot Ethereum ETF.
Currently, the value of Ethereum stands at $3,669.88, showing a 0.3% rise in the past hour and an impressive 18.1% surge since yesterday. Over the past week, Ethereum’s value has increased by 25.9%. The trading volume of Ethereum in the last 24 hours reached an impressive $36,238,466,706.
The surge in Ethereum’s price on May 20 was a result of a prediction by Eric Balchunas, a senior analyst at Bloomberg, who estimated that it could increase by 25% to 75%. Balchunas noted that the United States SEC might be under political pressure, as their previous stance showed little engagement with ETF registrants.
Although there is no official confirmation from the regulator, Balchunas mentioned that the SEC is reportedly requesting exchanges like the NYSE and Nasdaq to update their filings. The final decision regarding the registration requirement for individual funds is still pending.
Due to the complexities and potential risks associated with proof-of-stake cryptocurrencies, the regulatory body needs an extended period to verify and approve the necessary documents.
The announcement of the VanEck spot Ethereum ETF decision on May 23 is expected to cause ongoing price fluctuations. A positive outcome could significantly increase the price of Ether, potentially pushing it to $4,000 or higher.
There has been a notable increase in activity from major players in the Ethereum market, with a massive acquisition of 110,000 ETH valued at $341 million in the past 24 hours. Additionally, the ETH/BTC pair has seen a significant increase, with some individuals swapping their Bitcoins for Ethereum.
The upcoming decision on spot Ethereum ETFs has also sparked attention towards the expiration of weekly and monthly ETH options. Deribit has recorded an Ether options open interest of $867 million for May 24, which jumps to an impressive $3.22 billion for May 31. In contrast, the monthly open interest for ETH options on CME is only $259 million, while 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 an initial indication of this expected transition. Analysts predict that Biden’s administration will take a more lenient stance towards crypto, if not a complete reversal, to avoid alienating potential voters. This move follows Trump’s open support for crypto.
By not fully committing to the crypto issue, Biden positions himself as a candidate who recognizes its significance while avoiding divisiveness. However, some believe that the administration’s position on cryptocurrencies will be more explicitly communicated by Gary Gensler’s replacement before his tenure concludes in 2025.
This article was originally reported by Florence Muchai for Cryptopolitan.
