Ethereum’s native token, ETH, surged to $3,000 on Feb. 20 after a week-long rally that saw an influx of cash into various cryptocurrencies. This marked the first time since April 2022 that Ethereum reached this price level, signaling a positive sentiment towards the second-largest cryptocurrency and blockchain in the market. According to CoinMarketCap, ETH experienced a growth of over 2% in the last 24 hours and more than 13% in the past week.

Ethereum now boasts a market cap exceeding $355 million, representing just over 18% of the total crypto market. Year-to-date, ETH has seen a 30% increase in value.

ETH’s rise coincides with the surge in Bitcoin prices and the overall cryptocurrency landscape. Bitcoin’s demand has spiked after the U.S. SEC permitted spot BTC ETFs to trade on major national exchanges like NASDAQ and CBOE.

Analysts attribute the growing interest in crypto markets to the introduction of spot Bitcoin ETFs, as reflected in the TradingView data showing a nearly 20% expansion in the crypto market cap within the first two months of the year.

Ethereum’s ETF Momentum

Various issuers are now vying to launch spot Ethereum ETFs with ETH as the underlying asset. Notable issuers such as ARK 21Shares and Invesco Galaxy have filed applications to list these ETFs on U.S. exchanges, expanding the accessibility of ETH-based products in the market.

The SEC’s recent approval of spot Bitcoin ETFs has raised hopes for a similar outcome for ETH-based products, despite differing views from SEC Chair Gary Gensler on cryptocurrency regulations. Analysts predict a 50% chance of Ethereum ETFs tracking spot ETH prices receiving regulatory approval in the second quarter of 2024.

The SEC has postponed its decision on spot Ethereum ETFs until May, coinciding with an upcoming technological upgrade for Ethereum. The launch of Dencun on the mainnet by the end of March is expected to enhance data availability for layer-2 rollups, reduce gas fees, and streamline transactions within Ethereum’s ecosystem.

As Ethereum continues to make strides in the cryptocurrency market, investors and enthusiasts eagerly anticipate the regulatory developments and technological advancements that lie ahead.

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