The approval could also be a catalyst for bitcoin to hit new records, according to Standard Chartered. Ethereum rocketed 22% higher on Tuesday on surging confidence that ETFs pegged to the cryptocurrency could be approved as soon as this week.

Crypto boosters are in a fine mood after a series of wins in Washington D.C., where one of their biggest antagonists saw her influence decline.

Crypto prices have surged on signs of momentum toward US approval of exchange-traded funds investing directly in the second-largest token Ether, a shift from a more downbeat outlook as recently as last week.

Key Takeaways The price of ether rose more than 20% on Tuesday, before giving back some of the gains.The price jump appears to be related to improved odds of a spot ether exchange-traded fund (ETF).Crypto markets experienced renewed optimism for spot ether ETF approval after the SEC asked exchanges to update related filings.

Bitcoin and ethereum's massive rally comes after the U.S. Securities and Exchange Commission (SEC) requested an urgent update from those who had filed to issue spot ethereum exchange-traded funds (ETFs)—with analysts predicting it means approval could be

Renewed hopes of an ether ETF debut in the U.S. is likely to see investors take money out of SOL and other alternative cryptocurrencies to invest into ETH. Approval of a spot ether ETF is likely to broaden mainstream demand for crypto in the long run.