Ethereum Jumps 20%, Overtakes Mastercard Amid Spot ETF Optimism – DiarioBitcoin
By Hannah Perez
Renewed enthusiasm over the possible approval of an Ethereum spot ETF also sent ETH futures open interest to a new record high.
***
- Ethereum Jumps in Price Amid Hopes for ETF Approval in the US
- It surpassed the USD $3,800 mark and the market capitalization exceeded that of Mastercard
- ETH Futures Open Interest Also Soared to a New Record Level
- SEC Is Sending Signals of Possible Ethereum Spot ETF Approval
Ethereum (ETH) has experienced a meteoric price rise amid signs of the possible arrival of a first-ever exchange-traded fund (ETF). Ethereum spot in the US market.
The second largest cryptocurrency in the world The price shot up more than 20% this Tuesday, modestly surpassing the USD $3,800 level. The rise motivated a broader bullish movement in the market that saw Bitcoin surpass the USD $71,000 mark, while the global capitalization of cryptocurrencies gained more than 8%.
Renewed hopes about possible ETF approval appear to be driving the rally. According to various reports, the US Securities and Exchange Commission (SEC) has apparently asked issuers to submit updates to their ETF proposals Ethereuma move that often precedes an approval.
The stock exchanges Nasdaq and CBOE received instructions from the regulator to refine their proposals, reported Reuters this Tuesday, and Fidelity Earlier, it presented an amendment to its ETF proposal, a measure that is estimated to be replicated by other issuers.
Meanwhile, analysts BloombergEric Balchunas and James Seyffart, who said yesterday they had heard rumors about a change in the SEC’s position, increased their estimate of the probability of approval from 25% to 75%.
Ethereum above Mastercard
The market capitalization of Ethereum benefited from the feeling of optimism among investors about the possible launch of a first ETF in the United States. ETH’s market capitalization rose above USD $458 billion, surpassing the credit card giant, Mastercardwith a capitalization of USD $424 billion.
In addition to Mastercardthe unexpected increase in the price of ETH, has placed the second main cryptocurrency above other high profile companies like Samsung, Bank of America and Netflixin terms of market capitalization.
Ethereum is currently ranked 24th as the world’s largest asset, while Bitcoin occupies 9th place with a capitalization of USD $1.4 trillion, just above Goalaccording to data from CompaniesMarketcap.
ETH Futures Open Interest Also Soars
Meanwhile, investor optimism over the possible approval of an ETF also triggered open interest in ETF futures. Ethereum on centralized exchanges towards a new all-time high.
According to CoinGlassthe aggregate open interest (OI) for ETH futures, or the dollar sum of such contracts, reached a record level of USD $14 billion on Tuesday, setting a record in US dollars, as noted The Block.
Daily open interest in futures Ethereum It has increased more than 40% since early 2024, when it was around $10 billion. OI’s previous high had been set at $13.2 billion on March 15.
OI also measures the total value of all outstanding futures contracts or “not settled” on stock exchanges and indicates market activity and trader sentiment around a particular asset, as that publication explains.
The data speaks of an increase in the influx of money into the investment market. Ethereum. Rising open interest along with rising prices is said to confirm the bullish trend, according to CoinDesk.
The regulator is expected to make a decision on the ETF proposal Ethereum in cash VanEck on May 23. The SEC must approve Forms 19b-4 and S-1 registration statements for ETFs to begin trading on stock exchanges.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
