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The price of Ether, the cryptocurrency that powers the Ethereum blockchain network, rose 8% to $3,775 on Tuesday, reaching its highest level in the last two months. This rise follows a significant 13.8% jump on Tuesday. The positive market movement comes as investors remain hopeful about the U.S. Securities and Exchange Commission's (SEC) upcoming decisions on applications for spot exchange-traded funds (ETFs) that track ether.
Leading cryptocurrency Bitcoin also experienced a rise, rising 2.2% to $71,000. It's currently approaching its March high of $73,803.25, falling just 4% short of that record value.
The market's optimism is partly attributed to rumors suggesting the SEC may approve the highly anticipated ether ETFs. This speculation led to the biggest two-day gain for ether in nearly two years. Previously, market consensus was that these applications would likely be rejected.
The SEC's approval of several spot bitcoin ETFs earlier this year led to a sharp rally in the price of bitcoin, and the ETFs attracted billions of dollars in inflows. While bitcoin has gained 67% in value since the beginning of 2024, ether has lagged behind with a 60% increase.
Ben Laidler, global markets strategist at eToro, commented: "Ethereum has taken pole position in the latest crypto rally ahead of Thursday's first SEC deadline to decide on the ETH ETF." He added that definitive approval is unlikely, but any positive indication from the SEC would be important for the market.
Applicants for spot ether ETFs include VanEck and ARK Investment Management. The SEC is expected to rule on their applications by May 23 and May 24, respectively.
Joseph Edwards, director of research at Enigma Securities, noted that the SEC has required exchanges to update their filings for ether ETFs. Also pay attention. $BTC