Bitcoin rises sharply on speculation over spot Ether ETF

The world’s biggest crypto currency added 5.8% in the last 24 hours to $70,987.1, but world’s second-biggest token Ether was the star performer on Tuesday, soaring 17% to a 1-½ month peak of $3,656.01

Bitcoin price rose sharply on Tuesday, tracking a rally in Ether after a media report flagged some progress towards the approval of spot Ether ETFs for U.S. markets.

The world’s biggest crypto currency added 5.8% in the last 24 hours to $70,987.1 by 05:08 GMT.

But world’s second-biggest token Ether was the star performer on Tuesday, soaring 17% to a 1-½ month peak of $3,656.01.

According to a report from Coindesk, the U.S. SEC asked applicants for spot Ether exchange traded funds to update some key filings, ahead of a key deadline for the approval of the funds later this Thursday.

While the report said that there was still no guarantee that the regulator will approve the exchange traded funds, it did mark some progress towards an eventual approval.

Bloomberg analysts Eric Balchunas and James Seyffart updated their expectations for a spot Ether ETF approval to a 75% possibility from 25%, citing the Coindesk report and stating that the Securities and Exchange Commission could be “doing a 180” on a potential approval.

The Securities and Exchange Commission was seen largely averse towards a spot Ether ETF, particularly as recent reports said the regulator was also pursuing action against the Ethereum Foundation over Ether’s potential nature as a security.

But a spot ETF approval could spark a similar rally in Ether as it did for Bitcoin earlier in 2024, where the token soared to a record peak on increased capital inflows as institutional investors piled into the exchange traded funds.

Data from digital assets manager CoinShares showed on Monday that crypto investment products saw a second consecutive week of capital inflows, as some soft readings on U.S. inflation ramped up bets that the Fed will cut interest rates this year.

Total capital inflows were at $932 million in the week to May 20, with Bitcoin continuing to dominate capital flows. Still, overall trading volumes remained well below peaks seen in the aftermath of the spot Bitcoin ETF approvals in February and March.

Altcoins rose, tracking gains in Ether. Solana added 3.6%, while XRP gained 3.7%.

Dogecoin and SHIB advanced 6.6% and 4.7%, respectively.