Ether explodes 18% after rumors of the acceptance of a spot Ethereum ETF by the SEC

Some analysts have indicated that the US financial markets regulator could approve spot Ethereum ETFs as soon as this week. The cryptocurrency jumped almost 20% on Monday May 20.

A boom of almost 20%. The price of ether increased by 18% during the day of Monday, May 20, due in particular to renewed optimism regarding the decisions of the SEC (Securities and Exchange Commission), the financial markets regulatory authority. from the United States, on the likelihood of approval of a spot Ethereum ETF this week. A decision is expected this Thursday, May 23.

Eric Balchunas, ETF analyst at Bloomberg and followed by more than 280,000 people, announced on compared to 25% previously). A post seen more than 4 million times in less than 24 hours.

The ether market then got excited and the cryptocurrency reached 3,658 dollars (3,364 euros) at 11:30 a.m. Tuesday. The approval of an Ethereum spot ETF would have major repercussions on the cryptocurrency market. The move would allow investors to buy and sell ether through traditional financial investments traded on exchanges. This would increase the accessibility and legitimacy of this cryptocurrency in the eyes of the general public.

American inflation has also reinforced this trend for ether and other cryptocurrencies. Last week, the Fed announced that consumer prices (according to the CPI index) rose 3.4% year-on-year in April, compared to +3.5% year-on-year in March. It was the first time since January that inflation slowed, which gives arguments in favor of an upcoming reduction in key rates from the American Federal Reserve (the Fed). However, a more accommodating monetary policy favors the riskiest assets, including cryptos.

This sudden price rise also led to the liquidation of over $250 million in short positions yesterday, according to Coinglass. In other words, investors who were betting on a drop in crypto prices (who “short” these prices) were forced to urgently unwind their positions. Which concretely results in redemptions on shorted cryptos. Bitcoin and ether thus recovered around $80 million each from these liquidations, the largest since March 6.