Over the past 24 hours, both Bitcoin (BTC) and Ethereum (ETH) have shown significant price increases. This increase is mainly due to positive news from the United States that is particularly favorable for Ethereum. In this article, we discuss the details behind this price increase.
The probability of approval of the Ethereum ETF rises from 25 to 75%. The value of Ethereum (ETH) has risen sharply in the past day, mainly driven by rumors about the possible approval of a spot Ether exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
This is reportedly due to the regulator’s unexpected request for updates for the ongoing applications, which is encouraging, according to a recent post. Balchunas wrote on X:
“We’re hearing rumors that the SEC could make a U-turn on this issue, which seems to be becoming increasingly politically charged,” said Balchun.
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Ethereum Spot ETF: Reasons for Good News
A spot ETF for Ethereum would mean that investors can directly invest in ETH through traditional investment platforms without actually needing ETH to own it. This would increase the accessibility of Ethereum investments significantly and likely lead to greater demand for crypto.
An approval of a spot Ether ETF would not only be good Ether news. But it could have a positive impact on the broader crypto market.
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Speculation about the adoption of the Ethereum spot ETF has already led to a surge in the ETH price, and the broader crypto market is responding positively. Investors see this as a sign that the crypto industry is maturing and gaining more recognition from financial regulators.
Basically, the approval of the American Bitcoin ETF in January of this year has already led to a massive appreciation in the BTC price. The price has still increased by 68 percent this year, despite the fact that it was initially on the negative side—likely as a result of buying on rumors and selling due to news effects.
Positive inflows into bitcoin ETFs
In addition to the news about Ethereum, the bitcoin ETFs also showed positive inflows yesterday. This likely contributed to BTC’s positive price movement.
According to a post by Dutchman Daan Crypto on X, the ETF inflow figures yesterday amounted to +$237.2 million. IBIT saw net inflows of $66.4 million, FBTC had net inflows of $64 million, and GBTC saw $9.3 million in net inflows at OTI.
“For the fourth time in a row, a strong day with over $200 million. Who knows what will occur after the introduction of an ETH ETF?” Daan Crypto wrote:.
