Ethereum is attracting the attention of cryptocurrency traders, triggering a significant shift in market dynamics. Anticipation surrounding the potential approval of the first-ever Ethereum spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) is fueling an increase in market activity.
The increase comes on the heels of Ethereum’s sharp price rise to $3,759, marking a 2.5% increase and pushing its market cap to an impressive $451 billion.
Ethereum Futures Surge
A recent report from market intelligence platform Santiment indicates a massive surge in Ethereum futures, with open interest reaching $15.5 billion on Tuesday. The surge is in line with rumors that the SEC is looking to approve ETH exchange traded funds.
CoinGlass Data further highlights the fervor in the crypto space, with open interest across all exchanges skyrocketing to a record 4.18 million ETH, marking a remarkable 32% increase in just 24 hours.
Ethereum is shining brightly!
After a period of caution among traders, Ethereum and altcoins are making a remarkable comeback. Initially, there was hesitation following market retracements after Bitcoin hits all-time high on March 14. However, sentiment changed dramatically on March 20, leading to one of the most impressive price performances of 2024.
This resurgence has been fueled by excitement over increased exposure to the Ethereum network and whispers of the approval of the first Ethereum spot ETF.
SEC Moves Toward Approval: Ethereum ETF in the Works?
Noted analysts James Seyffart and Eric Balchunas have given credence to speculation that the SEC is moving closer to approving a Ethereum Spot ETFThe U.S. Securities and Exchange Commission has expedited the process, requiring exchanges to quickly revise their 19B-4 filings related to Ethereum ETFs.
If approved, ordinary investors could tap into Ethereum’s potential by buying shares tied to the cryptocurrency’s price movements.
Additionally, the ETH/BTC pair has has increased sharplyeven amidst Bitcoin’s surge. Notably, some major players have started converting their Bitcoin holdings to Ethereum.
Altcoins and meme tokens ride the wave
Optimism surrounding Ethereum’s resurgence has spilled over to altcoins and meme tokens, with Solana and Avalanche posting notable weekly gains.
Cryptocurrencies are also making a comeback, with UNI and LDO posting impressive gains of 43% and 38%, respectively. BONK leads the way with a remarkable 44% increase in its market cap.
Also see: Rising Ether Demand Could Lead to Supply Crisis, Ethereum Co-Founder Warns
Is Ethereum About to Dethrone Bitcoin as the Leading Cryptocurrency?