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Crypto bounces back on ETH ETF hopes

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Ethereum rises 20% ahead of ETF approval deadline.

Cryptocurrency markets have enjoyed an unexpected shot in the arm today after rumours of an about-turn in US crypto policy.

Ethereum hit a 2-month high after experts suggested the odds of spot Ethereum exchange-traded funds (ETFs) being approved this week were now at 75%.

Eric Balchunas, senior ETF analyst at Bloomberg, revised his odds of approval up from 25% to 75% due to rumours that the Securities and Exchange Commission (SEC) was considering a policy 180 due to growing political pressure in the US.

The SEC has until the end of this week to decide whether to approve various Ethereum ETF applications.

What does this mean for Ethereum?

The approval of spot Ethereum ETFs would go a long way to cementing its place as a legitimate asset, as well as potentially clear up uncertainty around its legal status.

Because of how it was originally launched, some experts believe the SEC will rule that ETH is an unregistered security and reject the ETF applications on that basis.

This was not something that Bitcoin had to contend with when spot BTC ETFs were approved back in January.

Spot Ethereum ETFs were recently launched in Hong Kong, but did not have anywhere near the impact expected if the US decides to approve them this week.

How did the markets react?

The price of ETH hit US$5,500 for the first time in 6 weeks on the back of the news, leading a wider bounce in the crypto markets.

Bitcoin also rose more than 6% to US$71,000, within touching distance of its all-time high.

Trying to get a handle on the markets? Cut through the noise with our overview of the best cryptos to buy right now, explore some strategies for how to trade crypto or see if there's a better platform for you with our guide to the best crypto exchanges.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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