Investing.com — Bitcoin prices soared Tuesday, tracking Ether's gains, following media reports indicating progress toward approval of a Spot Ether exchange-traded fund for the U.S. market.
Shares rose 5.8% in the past 24 hours to $70,987.1 by 01:08 ET (5:08 p.m. Japan time).
But Tuesday's star performer was the world's second-largest token, which surged 17% to a 1-and-a-half-month high of $3,656.01.
Ether soars on report that SEC asks ETF applicants to update key filings
The U.S. Securities and Exchange Commission has asked Spot Ether ETF applicants to update several important filings ahead of a key deadline for fund approvals scheduled for later this Thursday, according to a report from Coindesk. Ta.
The report said there was still no guarantee that regulators would approve the ETF, but that it had made some progress toward final approval.
Citing a report from CoinDesk, Bloomberg analysts Eric Balchunas and James Seifert updated their predictions that the probability of Spot Ether ETF approval is between 25% and 75%, and the SEC has raised the possibility of approval. He said there was a possibility that he would “make a complete 180 decision.”
The SEC has a general aversion to the Spot Ether ETF, especially since recent reports said the regulator was filing a lawsuit against the foundation over the potential nature of Ether as a security. It was seen that he was doing something.
However, the approval of a spot ETF could trigger a rally for Ether similar to what happened with Bitcoin in early 2024, when institutional investors boosted inflows into the ETF and the token soared to all-time highs.
Crypto prices today: Bitcoin capital flows improve amid interest rate speculation
Data from digital asset management firm CoinShares on Monday showed capital flows into crypto investment products for the second straight week as some soft views on U.S. inflation fueled expectations that the Federal Reserve will cut interest rates this year. It became clear that it was.
Bitcoin continues to dominate capital inflows, with total inflows coming in at $932 million for the week ending May 20. Still, overall trading volumes remain well below the peaks seen following the approval of a spot Bitcoin ETF in February and March.
Altcoins rose following the rise of Ether. 3.6% increase, 3.7% increase.
Meme tokens added 6.6% and 4.7% respectively.