Key Points
- Ether's price has reached $4,000 for the first time in over two years.
- Speculation is rife about the possible approval of spot ether exchange-traded funds (ETFs) in the U.S.
Ether's price has hit $4,000, a milestone it hasn't reached in over two years.
This surge in price has occurred amidst speculation that spot ether ETFs could soon be approved in the United States.
Ether's Recent Performance
The second-largest cryptocurrency by market cap, Ethereum (ETH), has seen a 4% increase in the last 24 hours, a 15% rise over the past week, and a 68% growth over the past month.
The last time Ether traded at this level was in December 2021, shortly after it hit an all-time high of $4,868 on Coinbase.
Ether then fell 82% to a bear market low of $880 in June 2022, influenced by turmoil in the crypto market, including the collapse of the Terra ecosystem and the subsequent bankruptcy of a crypto exchange.
In the meantime, the GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has increased by 3% to 150.04 over the last 24 hours.
Speculation Around Spot Ether ETFs
Following the successful launch of spot bitcoin ETFs in January, focus has shifted to the potential for a spot ether ETF in the U.S.
Major firms such as Fidelity, BlackRock, and Franklin Templeton have applied for a spot ether ETF over the past few months.
This speculation has seen Ether's price outperform Bitcoin (BTC)'s in 2024, registering 73% year-to-date gains compared to Bitcoin's 60%.
Despite this, there are differing opinions on the likelihood of a spot ether ETF approval.
Some analysts suggest a 70% possibility for approval by May 23, while others believe the SEC is unlikely to approve spot ether ETFs soon, with a 50% chance of approval by May at most.
Further uncertainties remain surrounding spot ether ETF approvals, given the stance that cryptocurrencies other than Bitcoin are securities.
Regardless, the crypto community continues to watch and speculate on the potential for a spot ether ETF approval.
