Ethereum Surges Past $2.4K Amid Speculations of Potential Ether ETF

• ETH and Ethereum-based Tokens Soar as Prospects of ETHER ETF Loom
• Bitcoin Trading Volatility Triggered by Fake Tweets
• Additions to the Crypto Community's Sentiment
• Rise in Lido's LDO and RocketPool's RPL Tokens
• Advancements in Tokens of Layer 2 Networks
• Ether ETF Approval: A Probability or Possibility?

ETH and Ethereum-based Tokens Soar as Prospects of ETHER ETF Loom

Ethereum$2,315 -2.42% (ETH) and native tokens of various applications established on the Ethereum platform have witnessed a significant increase in the last 24 hours. This surge is a result of traders' anticipation of a potential proposal for an Ether exchange-traded fund (ETF). This follows the predicted approval of a Bitcoin$42,260 -0.64% ETF in the U.S. Early Wednesday trading saw ETH rise by 5% to exceed $2,400 during the European trading hours. Meanwhile, Bitcoin recorded a 2.2% dip in the same duration.

Bitcoin Trading Volatility Triggered by Fake Tweets

A series of misleading tweets from a temporarily compromised US Securities and Exchange Commission (SEC) Twitter account contributed to remarkable volatility in Bitcoin trading. It's worth noting that BlackRock had previously filed an S-1 form with the SEC for its iShares Ethereum Trust. This is a spot Ether exchange-traded fund (ETF).

Additions to the Crypto Community's Sentiment

Current sentiment in the crypto community indicates that traders are positioning for a potential Ether-focused product. This would mark the first time that professional investors in the U.S gain spot exposure to the blockchain's token without the necessity to own it. As the CEO of Kaminari, Alex Onufriychuk, noted in a Telegram message, There's a noticeable trend towards frontrunning the ether ETF.

Rise in Lido's LDO and RocketPool's RPL Tokens

Lido's LDO and RocketPool's RPL, both protocols that enable users to stake Ether on their platforms and earn approximately 4.5% in annualized staking rewards, experienced a surge as high as 17% before declining.

Advancements in Tokens of Layer 2 Networks

Layer 2 network tokens such as Mantle's MNT and Optimism$3.67 -1.41%'s OP also saw an increase of up to 9%. These networks, built on Ethereum, function as autonomous blockchains that permit users to transact more quickly and at a lower cost than the main blockchain.

Ether ETF Approval: A Probability or Possibility?

Despite these positive developments, market observers have warned that the approval of an Ether ETF is more of a probability than a certainty. As Martin Lee, an analyst at on-chain data firm Nansen, expressed in a Telegram message to CoinDesk, The main idea is that ETH, being the second largest cryptocurrency, would have the highest probability of being the next ETF after BTC. As of Wednesday, thirteen issuers, including traditional finance powerhouses BlackRock and Fidelity, are awaiting approval for a spot Bitcoin ETF, which is expected later in the day.

Edited by Jonathan Stoker