The crypto market is witnessing a surge in optimism as Ethereum’s price experiences a significant boost. This rise in value is primarily linked to the anticipated approval of a spot Ethereum Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). 

Bloomberg Intelligence analyst Eric Balchunas estimates a 70% chance of approval by May. Consequently, Ether’s value has soared by 9% in the last 24 hours, reaching $2,625 and showing an 18% increase over the past week.

SEC Decision on Ethereum ETF

The market’s reaction mirrors investor confidence in the potential of an Ethereum ETF. This enthusiasm follows the SEC’s recent approval of eleven Bitcoin ETFs. Joe Caselin from BIT crypto exchange observes a pattern of “buy the rumor, ignore the news, buy the next rumor” in the market. 

Notably, BlackRock, set to launch its Bitcoin ETF, has a strong history with the SEC, boasting 575 approvals. The final decision on the Ethereum ETF, filed by Ark and 21Shares, is due by May 23. However, the SEC chair Gary Gensler’s view of cryptocurrencies, barring Bitcoin, as securities adds a layer of uncertainty to the process.

Potential Ripple Effects: Beyond Ethereum

The approval of an Ethereum ETF could pave the way for other cryptocurrencies like Solana to gain similar investment vehicles. Rachael Lucas, a technical analyst at BTC Markets, points out Solana’s impressive 920% growth in 2023, far outpacing Bitcoin’s 155% in the same period. 

This growth has not gone unnoticed by investors. Moreover, Caselin also suggests that an Ethereum ETF approval might lead to a broader range of ETFs covering top market cap tokens, akin to an S&P 500 model for cryptocurrencies.