ETH Soars by Over 18% on Growing Anticipation for Spot ETF Approval
CryptoNewsTerminal Staff21 May, 2024
ETH Soars by Over 18% on Growing Anticipation for Spot ETF Approval
The world's second-largest cryptocurrency, Ethereum (ETH), experienced a remarkable surge of over 18% overnight, temporarily reclaiming the $3,700 threshold, its highest point in two months. This upswing is primarily driven by escalating hopes for the approval of a spot exchange-traded fund (ETF) for ETH by the US Securities and Exchange Commission (SEC). Notably, the SEC requested updates from exchanges like the NYSE and Nasdaq concerning their filings for ETH spot ETFs the previous day. This move prompted Bloomberg ETF specialist analyst Eric Balchunas to substantially increase his predicted likelihood of ETF approval from 25% to 75%. Furthermore, the outstanding notional value of ETH options contracts set to expire on the 24th on Deribit, the world's leading cryptocurrency options exchange, climbed to a staggering $867 million, while those expiring on the 31st reached an impressive $3.22 billion. The ETH options call-put ratio on Deribit indicated a dominance of call options, implying that traders were actively purchasing call options rather than put options. This suggests a bullish sentiment among traders who are anticipating a sustained rise in ETH prices.
