Ethereum ETF Approval Rumors Spark Massive Market Rally, Santiment Report
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Ethereum has taken center stage for crypto traders, sparking a significant market shift. Speculation that the SEC might approve the first spot Ethereum ETF has fueled a surge in market activity. This follows a robust price surge in Ethereum, which reached $3,759, reflecting a 2.5% increase and bringing its market cap to $451 billion.
Record-Breaking Open Interest
According to a report from the market intelligence platform Santiment, a massive influx in Ethereum futures contracts, with open interest hitting $15.5 billion on Tuesday. This spike coincided with rumors about the SEC’s potential approval of ETH exchange-traded funds.
— Santiment (@santimentfeed) May 22, 2024
With #Ethereum front and center for many #crypto traders, we have taken a deep dive to look at what the top metrics are pointing to after a mammoth week. Regardless of the #SEC's now likely approval of the first $ETH #ETF, see what #onchain and social indicators are pointing… pic.twitter.com/vx9fS4u1ri
However recent data from CoinGlass shows, open interest on all crypto exchanges reached a record 4.18 million ETH, surging by 32% in just 24 hours.
Meanwhile, for the past two months, traders had been avoiding ETH and altcoins due to harsh market-wide retracements following Bitcoin’s March 14th all-time high. However, March 20th turned out to be one of the best price performance days of 2024, driven by news of potential increased exposure to the ETH network and the approval of the first spot Ethereum ETF.
ETH ETF To Approve Soon
Recent announcements from analysts James Seyffart and Eric Balchunas suggest that the SEC may be close to approving a spot Ethereum ETF. The U.S. Securities and Exchange Commission (SEC) has ordered exchanges to quickly update their 19B-4 documents related to Ethereum (ETH) Exchange-Traded Funds (ETFs).
— Santiment (@santimentfeed) May 22, 2024
If approved, this would allow ordinary investors to gain exposure to ETH by purchasing shares that track the price of the cryptocurrency, which is the second-largest by market cap.
Moreover, the ETH/BTC pair has been rising sharply, even amid Bitcoin’s strong rally. Notably, some major players have begun converting their Bitcoin holdings into Ethereum.
MeMecoin Market Surge
The optimistic sentiment has extended beyond Ethereum to other cryptocurrencies, including altcoins and meme coins. Notable weekly gainers include Solana and Avalanche.
Meme coins have also seen a resurgence, while UNI and LDO posted impressive gains of 43% and 38%, respectively. BONK led the pack with a 44% increase in market cap.
Ethereum recent performance, along with significant gains in altcoins and meme tokens, highlights renewed confidence among traders.
