Ethereum led the altcoin rally, boosted by renewed optimism over the US SEC’s approval of a spot ETH ETF.
The total cryptocurrency market cap has surged to over $2.7 trillion, an increase of $200 billion in just 24 hours. This significant rise was driven by positive market sentiment due to notable gains in Bitcoin (BTC) and Ethereum (ETH) and potential regulatory changes.
Bitcoin (BTC) hit a multi-week high of $72,000 after trading around $67,000 for several days. The rise followed the release of favorable US Consumer Price Index (CPI) figures and accelerated further during the US trading session on Monday evening. Despite the slight decline, BTC remains above $70,000 with a market capitalization of $1.4 trillion.
Bitcoin ETF inflows continue
Inflows into Bitcoin ETFs have contributed significantly to the positive momentum in the market. Bitcoin ETFs recorded significant inflows of $237.2 million on May 20, according to data from Farside.
Ark ARKB led the way with inflows of $68.3 million, followed by BlackRock IBIT and Fidelity FBTC with inflows of $66.4 million and $64 million, respectively. These inflows are equivalent to approximately eight times the daily mining supply of Bitcoin, highlighting the high level of interest from investors.
Ethereum leads altcoin rally
Ethereum (ETH) led the altcoin rally, fueled by renewed optimism over the U.S. Securities and Exchange Commission’s (SEC) approval of a spot ETH exchange-traded fund (ETF). The announcement is expected on May 23, but speculation about possible approval is already influencing the market.
ETH rose 20% at one point, reaching $3,710, its highest price since April 9. Ether futures have also surged in popularity due to bullish sentiment surrounding the possible approval of a spot ETH ETF. Notional open interest, which represents the total dollar value of active Ether futures contracts, rose 25% in the past 24 hours to a record $14.05 billion, according to data from CoinGlass. This exceeds the previous high of $13.2 billion recorded in March.
Citing the expedited filing process, Bloomberg analysts raised the odds of SEC approval for a spot Ether ETF from 25% to 75%. This regulatory optimism is further supported by recent cryptocurrency support legislation, reinforcing the market’s bullish outlook. The possible approval of a spot ETH ETF not only boosted the price of Ethereum, but also sparked a broader market rally.
Wider Market Benefits
Other major cryptocurrencies including Binance Coin, XRP, Toncoin, Dogecoin, Cardano, Shiba Inu, Polkadot, and Bitcoin Cash experienced gains of up to 8%. Another standout that stood out was the Avalanche, which posted double-digit gains.
Many investors are now expecting the bull market to continue as optimism grows surrounding potential regulatory approval for a spot ETH ETF.
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