ETHUSD surged this week as hopes grow for the Securities and Exchange Commission (SEC) to approve Ether ETFs this week.
ETHUSD – Daily Chart
ETH is trying to find support at a previous resistance level of nearly $3,730 and could benefit from SEC approval.
Ethereum’s sudden surge on Thursday paused, with analysts blaming a large sell order. According to blockchain data records, symbolic Capital Partners sold 6,968 ETH worth $27.4 million within a minute.
Bitcoin also increased sales across the crypto market after a hot print from the S&P Purchasing Managers’ Index showed output growing faster in two years. That number was added to the previous day’s FOMC minutes, with investors pulling back their recent bets in hopes of an imminent rate cut from the US central bank.
Bitcoin’s surge this year was driven by the January approval for ETFs, which led to $13 billion in investment inflows via stock markets. With that interest, BTC moved from $42,000 to $69,500.
Many of the same entities that brought BTC ETFs—BlackRock, VanEck, and Ark—also filed for a spot in Ethereum ETF. The deadline for approval is approaching, May 23. Investors hope that an imminent approval will bring some diversification inflows to Ethereum.
According to Bloomberg analyst Eric Balchunas, there was “chatter” that the SEC has completely reversed its stance on Ethereum, providing a perfect chance that the ETFs will be approved.
Hong Kong has recently launched Ethereum ETFs and is looking to go one better than the United States with Ethereum staking. The SEC drove investment companies to change their applications and remove a staking system.
Staking allows investors to earn a passive income on their Ethereum holdings. Staking yields could increase demand for Hong Kong’s ETFs, which have seen lukewarm demand since it launched in April. Ether jumped from a market valuation of $377 billion to $450 billion.
