Ethereum Surpasses Mastercard in Market Cap as SEC’s Stance on ETF Approval Boosts Rally
NAIROBI (CoinChapter.com) – In a surprising turn of events, Ethereum has surpassed payment giant Mastercard in terms of market cap, with Ethereum’s market cap standing at $440 billion compared to Mastercard’s $427 billion. This achievement comes following the U.S. Securities and Exchange Commission’s (SEC) apparent change of heart regarding the approval of spot Ethereum ETF applications.
The surge in Ethereum’s market cap can be attributed to the sudden increase in the likelihood of SEC approval for spot Ethereum ETFs. Bloomberg analysts, who previously estimated a 25% chance of approval, have now revised their forecast to 75%. This shift in sentiment comes after reports of the SEC rapidly changing its stance on Ethereum ETFs, leading exchanges to swiftly update their filings. Eric Balchunas, senior ETF analyst at Bloomberg, highlighted that the SEC has requested exchanges to update their 19b-4 filings, potentially paving the way for an Ethereum ETF approval as early as Wednesday.
Alex Thorn, head of research at Galaxy Digital, offered insights into the SEC’s potential approach to Ethereum and staked Ether. He suggested that the SEC may recognize Ethereum as a non-security while considering staked Ether as a security.
The potential approval of an Ethereum ETF has garnered significant attention from both the cryptocurrency community and traditional finance. However, while the SEC’s decision is eagerly awaited, it is crucial to approach speculation with caution and rely on official announcements and concrete evidence.
The surge in Ethereum’s market cap has been accompanied by a notable price rally. In the past week, the price of Ethereum spiked to $3,775.43, representing a 21.99% increase in just 24 hours according to CoinGecko data. This surge has propelled Ethereum’s market capitalization to $453 billion, solidifying its position as the second-largest cryptocurrency by market cap. The price surge coincides with a period of intense buying activity, as indicated by the crypto market’s “Greed” rating of 70 on the Fear & Greed Index.
Bitcoin has also experienced a significant upward trend, with its price reaching $71,112.64, marking a 6.11% increase in the past 24 hours. Bitcoin’s market cap now stands at approximately $1.4 trillion, highlighting its dominance in the market. The past day has seen a surge in buying volume to $55 billion, reflecting growing investor confidence and bullish sentiment in the crypto market.
Above all, this rapid market response emphasizes the impact of regulatory decisions on cryptocurrency prices and investor sentiment. If an Ethereum ETF is approved, it could further solidify Ethereum’s position in financial markets, attracting more institutional investors and driving further market growth.