Ether jumps 20% on renewed optimism for an ETF, bitcoin also rallies

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Cryptocurrencies rose Tuesday amid a late surge in optimism around the U.S. Securities and Exchange Commission's decisions on spot ether exchange-traded funds applications, the first of which is due this week.

Ether led the rally, rising 12% to $3,785.42, according to Coin Metrics, after rocketing 20% on Monday.

Meanwhile, bitcoin added 2% and was trading at about $71,350, extending an 7% gain from the previous day. The flagship cryptocurrency has been rising since last week's April CPI reading showed inflation eased from the previous month, which could open the door again to rate cuts in the U.S. This week's rally has pushed bitcoin above $70,000 for the first time in more than a month.

"This sudden flip in expectations is an unexpected boon for investors who have been crying out for a driver after the [Bitcoin] halving passed and bitcoin ETFs were launched in the U.S. and Hong Kong," said Antoni Trenchev, co-founder and managing partner of Nexo. "If the spot ETH ETFs are approved, altcoins should take off as ether is often a leading indicator for the rest of the crypto market."

Crypto-related equities rode the wave. Coinbase and Robinhood each rose about 2% in premarket trading, adding to Monday's gains of 8% and 9%, respectively. MicroStrategy, a proxy for the bitcoin price, added 1%. Bitcoin miners also gained slightly, with Riot Platforms and Iren (formerly known as Iris Energy) each advancing 2%, and Marathon Digital and CleanSpark each ticking higher by 1%.

The rally began suddenly on Monday, amid reports that the SEC has requested key document updates from potential ETF issuers and exchanges. A spokesperson for the SEC said the agency doesn't comment on individual filings.

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