The world’s second-largest cryptocurrency, Ethereum (ETH), has surged 20% in the past 24 hours, showing strong bullish momentum. This rise comes as there is increasing optimism about the approval of a spot Ethereum ETF.
The SEC’s encouragement for ETF issuers to submit their 19b-4 filings has fueled large-scale buying by whales. As a result, ETH price is aiming for a rally to $4,000 and beyond.
Ethereum Surges as Spot Ether ETF Approval Prospects Rise
As of press time, Ethereum (ETH) is trading 19.64% higher at $3,692, with a market cap of $443 billion. This surge has extended ETH’s weekly gains to more than 25%. Additionally, daily trading volume for ETH has soared by 264% to over $36.24 billion.
The bullish momentum comes as the U.S. SEC has urged ETF issuers to update their 19b-4 filings for a spot Ethereum ETF, a move that was unexpected until recently due to minimal communication between the SEC and issuers over the past weekend.
Following these developments, market analysts have significantly raised the odds of a spot Ether ETF approval from an earlier estimate of 25% to now over 75%. Prominent crypto analyst Michael van de Poppe commented on the shift, saying, “The chances of denial on the spot Ethereum ETF have decreased substantially. There might be a delay, but approval before August seems likely. The bull market is underway.”
The first decision on the VanEck spot Ethereum ETF is expected by Thursday, May 23, which could introduce further price volatility. Positive developments could potentially propel Ether’s price towards $4,000 and beyond.
Ethereum Whales Drive Market Activity Amid ETH/BTC Surge
Ethereum whales have made a significant move by acquiring 110,000 ETH valued at $341 million over the past 24 hours.
Simultaneously, the ETH/BTC pair has seen a notable uptrend, despite Bitcoin’s strong rally. This trend has prompted some market participants to shift their holdings from Bitcoin to Ethereum.
#Ethereum whales bought over 110,000 $ETH in the past 24 hours, worth around $341 million! pic.twitter.com/45mqxyqVu0
— Ali (@ali_charts) May 20, 2024
Amidst increasing optimism for the approval of a spot Ethereum ETF, investor James Fickel (@jamesfickel) has borrowed 350 Wrapped Bitcoin (WBTC), equivalent to $25 million, from Aave. Fickel converted these WBTC into 6,905 ETH to take a long position on the ETH/BTC trading pair. Notably, Fickel has maintained this long position since the launch of the Bitcoin ETF on January 10.
As the #SEC requires exchanges to expedite the update of 19B-4 documents on $ETH #ETFs, the probability of approval of $ETH #ETFs has greatly increased.
James Fickel(@jamesfickel) continued to borrow 350 $WBTC($25M) from #Aave and exchanged it for 6,905 $ETH to go long the… pic.twitter.com/IYFmQyHVIP
— Lookonchain (@lookonchain) May 21, 2024
To date, Fickel has borrowed a total of 2,741 WBTC ($150.3 million) from Aave, exchanging it for 50,693 ETH at an average rate of 0.05408. These moves underscore the growing interest and strategic maneuvers within the cryptocurrency market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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