Crypto enthusiasts, get ready for some excitement! Last week was full of surprises in the crypto world! The US SEC approved the first batch of spot Ethereum ETFs, following a similar approval for Bitcoin products four months earlier.
This news sent the crypto market into a frenzy, with both Bitcoin (BTC) and Ether (ETH) experiencing big ups and downs as everyone waited for the SEC's decision.
At the start of the week, analysts raised the chances of approval from 25% to a huge 75%! This change in mood was reflected in indicators like the Bitcoin Volatility Index (BVIV), the Ethereum Volatility Index (EVIV), and the Volatility Risk Premiums (VRPs) for these assets.
Investor concerns about possible interest rate changes before the Fed's May 1 meeting pushed up the BVIV, EVIV, and VRPs. But things settled down after the meeting.
When the SEC finally gave the green light to Ethereum ETFs on May 23, the BVIV and EVIV dropped fast, along with the VRPs for Bitcoin and Ethereum. This change in market sentiment led to a drop in BTC and ETH prices, which had shot up to $71,000 and $3,900 respectively before the approval. After the initial excitement, investors started taking profits, pushing the prices of these cryptocurrencies down even further.
As of now, BTC and ETH are trading at $68,000 and $3,871 respectively, after falling by 1% in the past 24 hours. Keep an eye out for more updates, crypto fans!