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Ethereum ecosystem tokens rise in spot ETF approval hopes
Open interest in ETH futures reached $12 billion on Tuesday, up 34% over the past 24 hours.
Ethereum ecosystem tokens rose on Tuesday amid growing optimism over the potential approval of Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).
Ether (ETH), the second-largest cryptocurrency, jumped 21% to $3,796, its highest since March and just 23% from its all-time high of $4,878, according to CoinGecko.
Meanwhile, tokens of Ethereum or Layer 2-based protocols including Uniswap’s UNI, Lido’s LDO, Arbitrum’s ARB and Ethena’s ENA were among the top 15 biggest gainers among coins of at least $1 billion in capitalization market, second CoinGecko data. They are all up at least 9%.
The upbeat market mood follows statements from two ETF analysts who raised the bar chance of Ethereum ETF spot approval to 75% from 25%, as the SEC nears its May 23 deadline to respond to Form 19b-4 initial filings.
Analysts from Bloomberg, Eric Balchunas and Jeff Seyffart attributed this increase to recent rumors that the SEC may be changing its stance. Balchunas mentioned, “hearing rumors this afternoon that the SEC may be doing a 180.”
Another positive indicator is the open interest for ETH futures which reached a new high on Monday. Data from Coinalize shows that open interest in ETH futures reached $12 billion on Tuesday, up 34% over the past 24 hours.
Meanwhile, the Grayscale Ethereum (ETHE) trust fund fell sharply to 11% from 22% the previous day.