ETFs
Ether Extends Rally After 20% Rise Due to New Ether ETF Optimism
Omar Marques | Light flare | Getty Images
Cryptocurrencies rose Tuesday amid late optimism over U.S. Securities and Exchange Commission decisions on spot exchange-traded fund applications, the first of which is expected this week.
Ether led the rally, up 9% to $3,680.98, according to Coin Metrics. On Monday, it climbed 20%.
In the meantime, bitcoin added 2% and was trading at around $71,350, extending an 8% gain from the day before, when it reclaimed the $70,000 level.
Crypto-related stocks have been riding the wave. Coinbase And Microstrategy each gained about 2% in extended trading, and Robin Hood added 3%. Several Bitcoin mining stocks saw 3% gains, including Digital marathon, Riot platforms, Irene (formerly known as Iris Energy) and CleanSpark.
Investors are reconsidering the likelihood of the SEC greenlighting ether ETF applications amid reports that the SEC has requested document updates from potential ETF issuers and exchanges. THE previous consensus was that such funds would probably not be approved.
“ETH soared shortly after rumors began circulating that the SEC may finally approve spot ETH ETFs this week,” said Bartosz Lipiński, CEO of Cube Exchange.
“A bit like with spot Bitcoin ETFs will be approved sooner over the course of the year, however, this appears to me to be a “buy the rumor, sell the news” type situation and I imagine a rally through this Thursday…and then at least a brief sell-off, as funds be approved or not,” he added.
Final decisions on the applications of VanEck and Ark Invest are expected on Thursday and Friday, respectively.
BlackRock, Fidelity, Invesco, Grayscale and Bitwise Asset Management also have applications awaiting decisions this year.