- Anticipation is building for the SEC’s decision on a Spot Ether ETF on May 23rd.
- Market analysts predict a significant impact on Ethereum demand and buying pressure similar to Bitcoin’s ETF approval.
- Ethereum prepares for the Dencun network upgrade to enhance scalability and reduce transaction costs ahead of the Ether ETF decision.
This week started with a pleasant surge in the crypto market, reaching a new market cap of $2.2 trillion early Monday. Bitcoin experienced a notable 30% surge during Tuesday’s American trading session, surpassing the $53k resistance level and reaching a peak of $59,200 today. This bullish trend extended to the rest of the crypto market with Ethereum and Dogecoin making significant gains.
A significant contributor to Bitcoin’s rise was the Spot Bitcoin ETF, witnessing a substantial increase in trading inflow, totaling $2.4 billion. BlackRock Bitcoin ETF also played a key role, accumulating a volume of $1.3 billion over the last two days. However, attention is turning to May 23rd, when the Security and Exchange Commission (SEC) will make a crucial decision regarding Spot Ethereum ETF approval.
Analysts anticipate a procedure similar to the Bitcoin ETF approval for Ethereum ETF in late May. Bitwise Crypto Research Analyst Ryan compared Ethereum’s current situation to Bitcoin’s before its January 11th approval, stating in a Finance Yahoo interview, “I’m not surprised that we’re seeing Ethereum catch a similar bid here heading into the potential approval of spot Ethereum ETFs in May.”
Considering Bitcoin’s history, approval of ETFs has historically increased demand and buying pressure. Ryan emphasized the potential market dynamics shift for Ethereum with the approval of the Spot Ethereum ETF, stating, “If there were ETFs to come to market, you have the demand coming from those sidelined investors.” The SEC’s response to VanEck’s Spot Ether application on May 23rd will be crucial.
In addition, the Dencun network is set to upgrade the Ethereum and Ethereum L2 networks in March, just before the Ether ETF decision. This eagerly awaited upgrade aims to enhance scalability and reduce transaction costs for users. At the time of writing, Ethereum was trading at $3,245, reflecting a 2.23% increase in the last 24 hours.