In the past 24 hours, the altcoin king Ethereum (ETH) surged by 20% due to news of a significantly increased likelihood of spot Ethereum ETF approval. Following the U.S. Securities and Exchange Commission (SEC) urging issuers to expedite their 19b-4 filings, the probability of this approval rose from 25% last week to 75%. This development not only strengthened Ethereum’s main network asset ETH but also triggered a broader rally among altcoins within the Ethereum ecosystem.
ETF News Moves Altcoin Market
On-chain data provider Santiment highlighted the significant impact of the increased likelihood of spot Ethereum ETF approval on the cryptocurrency market. This increased likelihood led to significant gains in market value across the altcoin sector. The anticipation surrounding the world’s first spot ETF for Ethereum resulted in one of the top five trading days for the cryptocurrency market in 2024, with major Ethereum-based altcoins like UNI, PEPE, BONK, and LDO all rising by over 20% in the past 24 hours.
The price of the largest cryptocurrency Bitcoin (BTC) also saw a significant rise, reaching $71,400 for the first time in six weeks. However, Bitcoin’s rise was overshadowed by the broader market rally. The overall cryptocurrency market increased by 8.5% in the past 24 hours, with the market cap surpassing $2.6 trillion and daily trading volume increasing by 140%.
The resurgence in altcoins marks a significant shift following nearly a month of sideways consolidation. Popular crypto analyst Michael van de Poppe believes that altcoins have already bottomed out. Van de Poppe advises investors to increase their risk appetite, suggesting that altcoins have bottomed out against Bitcoin over the past four months and are ready for an upward reversal.
ETF Approval Could Pave the Way for Other Altcoins
The coming weeks are expected to bring significant changes, especially with the launch and trading of the spot Ethereum ETF in the coming weeks.
Van de Poppe believes these developments could herald the beginning of an exciting period for the cryptocurrency market. According to Anthony Pompliano, the approval of the spot Ethereum ETF could pave the way for the approval of ETFs for other altcoins, potentially subjecting many altcoins to regulatory scrutiny.
