20/05 Market Recap: ETH Soars on Spot ETF Hopes, Carries Market


Ethereum’s price skyrocketed over 19% to around $3,685 reaching a 2-month high, as speculation intensified that a spot Ethereum exchange-traded fund (ETF) could soon gain regulatory approval in the United States.

Eric Balchunas, a senior analyst at Bloomberg, significantly raised the estimated odds of an Ethereum spot ETF being greenlit from 25% to 75%. He cited potential political pressure on the U.S. Securities and Exchange Commission (SEC) to engage more proactively with ETF applicants after previously taking a hands-off approach.

While the SEC has not officially commented, reports suggest the regulator may be asking major exchanges like NYSE and Nasdaq to update their filings related to cryptocurrency ETF products. However, the final decision timeline remains uncertain as the SEC could potentially separate approval of the exchange rulebook changes from issuing a greenlight for specific ETF registration statements.

Ethereum led the charge among major cryptocurrencies with its near 20% daily rally. Numerous Ethereum-based tokens and liquid staking derivatives like Rocket Pool ETH, Lido Staked Ether, and Wrapped ETH also posted strong gains between 19-20% over the same period.

Bitcoin enjoyed a 6.7% gain to settle in around $71.1k after going slightly higher than that. Arweave was the only considerable loser on the say as they were down 5%. Bitcoin dominance retreate to 53.7% after a recent climb to 54.3%

Overall, the combination of revived spot ETF approval hopes and the looming major options expiry tailwinds have the Ethereum markets positioned for potential further upside in the coming weeks. However, the SEC’s final verdict on a spot ETF remains highly anticipated to determine if the surging bullish sentiment proves well-founded or premature.