Ethereum ETF Approval Could Spur 60% Rally as ETH Buying Increases

The potential approval of spot ether ETFs in the U.S. could trigger a 60% increase in Ethereum's value, similar to the surge seen with Bitcoin ETFs. Increased buying activity on exchanges and heightened market volatility are evident as the decision date approaches, with a significant rally expected if approval is granted. However, a rejection could lead to a substantial price correction.

The decision on the ether ETF is expected soon, although an exact date has not been provided. In anticipation of this decision, there has been significant buying activity observed on both centralized and blockchain-based exchanges. Holders bought over 100,000 ETH in spot markets on Tuesday, which is the highest daily level since September 2023. Reports of a favorable decision have also led some analysts to increase the odds of approval to over 75% from the earlier 25%. Additionally, open interest on ether-tracked futures spiked to a record $14 billion, which is 67% of bitcoin open interest as of Wednesday. This level is considered unusually high.