Ethereum (ETH) Surges Nearly 20% in a Single Day Amid Rumors of SEC Approval for Ethereum Spot ETF Trading

In the past 24 hours, the price of the cryptocurrency Ethereum (ETH) has surged nearly 20%, from 3,144 to the current 3,686, regaining a significant portion of its recent losses. However, it still falls short of the peak of this market cycle at $4,111.

Thanks to the substantial rise in Ethereum's price, Bitcoin and other cryptocurrencies have also seen increases. Bitcoin is currently priced at 71,400, just a step away from its cycle high of 73,777.

The surge in Ethereum's price is attributed to speculation within the industry that the U.S. Securities and Exchange Commission (SEC) is close to approving the trading of Ethereum spot ETFs. This is because the SEC has asked financial institutions that have already submitted applications for Ethereum ETFs to expedite the update of their 19B-4 forms.

Following the SEC's approval of Bitcoin spot ETFs, Bitcoin experienced a significant price increase due to massive capital inflows (although it also saw substantial declines afterward). Therefore, when the SEC approves Ethereum spot ETFs, it is natural for Ethereum to also experience a significant inflow of capital, leading to a notable price increase.

However, the SEC has not yet released any news regarding the approval process. Bloomberg ETF analysts believe the chance of approval has increased from 25% to 75%, suggesting that SEC approval is likely not far off.

Of course, there are still risks involved, as no one knows the final outcome of the SEC's decision. If the SEC ultimately decides to reject it, the price of Ethereum could see significant fluctuations. Cryptocurrency investors are advised to consider potential risks.

Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice or recommendations. The cryptocurrency market is highly volatile, and entry should be made with caution.