LONDON (Reuters) -Ether was set for its biggest two-day gain in almost two years and Bitcoin approached a record high on Tuesday on speculation over the outcome of applications for U.S. spot exchange-linked funds that track the world’s second-largest cryptocurrency.
Ether, which underpins the Ethereum Blockchain network, was 4.4% higher on the day at $3,650, after jumping 13.7% on Tuesday.
Top Cryptocurrency Bitcoin was last down 2% at $70,850, about 4% shy of the March peak of $73,803.25.
The American market watchdog will rule this week on some spot ether ETF applications. Analysts and investors said Tuesday’s jump was the result of unconfirmed rumors that the Securities and Futures Commission could approve these products, after investors previously thought they would be rejected.
Bitcoin rose sharply earlier this year after the SEC approved several spot bitcoin ETFs, which have seen billions of dollars in inflows.
So far in 2024, Bitcoin has gained 67%, but Ether is now close behind, with a 60% gain.
“Ethereum has taken the poll position in the latest crypto meeting ahead of Thursday’s first SEC deadline to decide on an ETH ETF,” said Ben Laidler, global markets strategist at Etoro, using Ether’s Market Ticker .
“Full approval is a long shot, but any guidance toward eventual acceptance would be a major step forward.”
VanEck, ARK Investment Management and seven other issuers have filed with the SEC to launch spot ether ETFs. The SEC must decide on the filings of VanEck and ARK, who are first in line, by May 23 and 24.
Joseph Edwards, head of research at Enigma Securities, cited reports that the SEC had asked exchanges that would list the ether ETF to update their filings and separate Bloomberg ETF research showing that analysts have increased their informal likelihood of approval.
The SEC did not immediately respond to an emailed request for comment sent outside U.S. business hours early Tuesday.
“The backlash against the ETH ETF after BTC’s was approved always seemed like an odd case for the SEC to try to push through unless they were willing to ask questions about Ethereum’s securities status more broadly, and it’s likely that the call came in somewhere. to not take that fight,” Edwards said.
Crypto markets took another step higher last week after data showing a slowdown in US inflation sparked a rally in risk assets.
(Reporting by Elizabeth Howcroft and Alun John; Editing by Amanda Cooper and Emelia Sithole-Matarise)
