Crypto bounces back on ETH ETF hopes
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.
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