NAIROBI (CoinChapter.com) — Ethereum has overtaken payment giant Mastercard, boasting a market cap of $440 billion compared to Mastercard’s $427 billion. This milestone comes on the heels of the U.S. Securities and Exchange Commission’s (SEC) apparent change of heart regarding the approval of spot Ethereum ETF applications.
SEC’s Surprising Shift on ETH ETF Approval
The surge in Ethereum’s market cap is attributed to a sudden increase in the probability of SEC approval for spot Ethereum ETFs. Bloomberg analysts, who previously gave a 25% chance of approval, have revised their forecast to 75%. This shift follows reports of the SEC rapidly changing its position on Ethereum ETFs, prompting exchanges to quickly update their filings. Eric Balchunas, Bloomberg’s senior ETF analyst, noted that the SEC has requested exchanges to update their 19b-4 filings, potentially paving the way for an Ethereum ETF approval as early as Wednesday.
Alex Thorn, head of research at Galaxy Digital, shed light on the SEC’s potential approach to Ethereum and staked Ether. He suggested that the SEC might recognize Ethereum as a non-security while considering staked Ether as a security.
“That would be somewhat congruent with their various court cases, as well as reports about their investigations, and perhaps allow the SEC to approve Ethereum ETFs while maintaining their previously stated positions,”
Thorn added
Moreover, the potential approval of an Ethereum ETF has garnered significant attention from the cryptocurrency community and traditional finance alike. While the SEC’s decision is highly anticipated, it remains crucial to approach speculation with caution and rely on official announcements and concrete evidence.
Market Reaction and ETH’s Price Surge
Notably, Ethereum’s market cap surge has been accompanied by a remarkable price rally. Over the past week, Ethereum’s price spiked to $3,775.43. This marks an increase of 21.99% in 24 hours according to CoinGecko data. This surge in value has propelled Ethereum’s market capitalization to $453 billion, reinforcing its position as the second-largest cryptocurrency by market cap. This price movement coincides with a period of intense buying activity, as reflected in the crypto market’s ‘Greed’ rating of 70 on the Fear & Greed Index.
Meanwhile, Bitcoin has also experienced a significant upward trend. Its price reached $71,112.64, marking a 6.11% increase over the past 24 hours. Bitcoin’s market cap now stands at approximately $1.4 trillion, highlighting its market dominance. The past day saw a buying volume increase to $55 billion, reflecting growing investor confidence and bullish sentiment in the crypto market.
Above all, this rapid market response underscores the influence of regulatory decisions on cryptocurrency prices and investor sentiment. Indeed, the potential approval of an Ethereum ETF could further cement its position in financial markets. This would likely attract more institutional investors and drive further market growth.
