The crypto market often stands out for its significant volatility. Major cryptocurrencies surged last night, with Ethereum’s ETH skyrocketing by 21% in just a few hours, pulling other assets along with it. This fruitful evening was driven by rumors surrounding Ethereum ETFs.

The cryptocurrency market surges in the wake of ethereum (ETH)

The U.S. Securities and Exchange Commission (SEC) seemed to be changing tack. It was reportedly considering approving spot ETFs based on Ethereum ETH. It was a highly unexpected decision, which set the cryptocurrency market ablaze. ETH unsurprisingly led the way, gaining +21% from late afternoon to mid-night:

The other consequence is that cryptocurrencies closely or remotely linked to Ethereum have also exploded. Over the past 24 hours, Optimism’s OP has risen by 13%, Immutable’s IMX by 12%, and MATIC by 8%.

This breakthrough took other cryptos with it: Bitcoin reached a very respectable +6% over the last 24 hours, and Binance’s BNB took +9% over the same period.

ETFs, the crypto market’s main drivers

It’s ironic that, despite the SEC’s criticism that crypto-currencies are too volatile, it’s still the SEC that’s triggering a rally by speculating on its decisions. It has to be said that the possible approval of spot Ethereum ETFs carries weight, as we now have the example of Bitcoin.

Back in March, spot Bitcoin ETFs propelled the BTC price to a new high of $73,737. This threshold is now approaching, with BTC this morning flirting with $71,000. If the SEC approves ETH ETFs on May 23, it’s likely a new bullish surge will follow.

Could this lead to another all-time high for ETH ? Unlike BTC, the latter is still a long way off: it is trading at $3,658 this morning, compared with $4,878 reached in November 2021.

Source : TradingView