Bitcoin, Ether Jump After US SEC Asks Exchanges to Update Regulatory Filings Ahead of ETF Deadline

Bitcoin and Ether prices surged on Tuesday with Bitcoin reaching $71,957 and Ether hitting $3,720.80, levels last seen in April. This upward trend is attributed to the US Securities and Exchange Commission (SEC) requesting aspiring Ether exchange-traded fund (ETF) exchanges to update 19b-4 filings before the May 23 deadline for the potential approval of an Ether ETF. Ethereum's rise is also influenced by the increase in popularity of layer-2 protocols built on top of it. Bitcoin's recent rally is part of a larger trend since October, with the world's largest cryptocurrency gaining over 82% from its January low.

Cryptocurrency Markets Surge on Ether ETF Expectation

The cryptocurrency market witnessed a significant upswing on Tuesday, with Bitcoin and Ether prices climbing on the news of the US Securities and Exchange Commission (SEC) requesting aspiring Ether exchange-traded fund (ETF) exchanges to update their 19b-4 filings ahead of the May 23 deadline for the approval of the world's second-largest cryptocurrency's ETF.

Bitcoin and Ether Price Surge

Bitcoin surged to as high as $71,957, while Ether hit $3,720.80, levels not seen since April 9. This surge followed a bullish trend that emerged on Monday, with Bitcoin jumping over 6% and Ether gaining more than 15%.

Ether ETF Deadline as Driving Force

The driving force behind Ether's surge is attributed to the looming May 23 deadline for the Ethereum ETF approval. While analysts initially considered the approval unlikely, Bloomberg analyst Eric Balchunas raised the probability of approval from 25% to 75%.

SEC's Request for 19b-4 Filing Updates

The SEC's request for aspiring Ether ETF exchanges to update their 19b-4 filings has raised hopes for approval. CoinSwitch Markets Desk suggested that the SEC's positive stance has prompted market excitement.

Layer-2 Protocols Gain Traction

Other common layer-2 protocols built on top of Ethereum also experienced gains, with ARB and OP leading the pack with over 18% gains against USDT.

Bitcoin's Recovery and ETF Impact

Bitcoin prices have rebounded since October last year, reaching a record high of $73,803.25 in March. The approval and launch of spot Bitcoin ETFs in the US have attracted new investors and reinvigorated market sentiment after a downturn in 2022.

Crypto Wallet Security Concerns

Cryptocurrencies exist on a decentralized digital ledger known as a blockchain. Investors can access their holdings through software or hardware wallets, but losing access to these wallets remains a common problem. Forgotten passwords, loss of authentication devices, and cyberattacks can all lead to inaccessibility.

Password Recovery Service Surge

Password recovery service companies are experiencing an increase in requests. A Switzerland-based firm using artificial intelligence models to access stranded wallets reported a tenfold surge in requests compared to the previous year.

Conclusion

The cryptocurrency market's current surge is largely driven by expectations surrounding the Ether ETF approval. The SEC's request for 19b-4 filing updates has raised optimism, while concerns about crypto wallet security continue to persist. Investors should remain vigilant and take appropriate measures to protect their digital assets.