The crypto market is experiencing a powerful upward momentum, driven by renewed optimism around the potential approval of a spot Ethereum exchange-traded fund (ETF). Bitcoin climbed as high as $72,000—its strongest level in over 40 days—while major altcoins like BNB and Solana broke key resistance levels, with SOL surpassing $180 and BNB reclaiming the $600 mark. The surge has triggered widespread gains across the top digital assets, but also led to massive liquidations, particularly among bearish traders.
Ethereum ETF Approval Odds Jump to 75%
The recent rally was catalyzed by a significant shift in sentiment following comments from Bloomberg ETF analyst Eric Balchunas. On May 21, he announced that the likelihood of a spot Ethereum ETF being approved has surged to 75%, sending shockwaves through the market. This development propelled Ethereum (ETH) to jump nearly 20%, briefly touching $3,700.
Balchunas’ assessment focused on the upcoming May 23 deadline for the 19b-4 rule change—a crucial regulatory step required for ETFs to be listed on U.S. exchanges. VanEck’s application is tied to this date, and growing confidence in its approval has fueled investor enthusiasm.
However, it's important to note that this does not guarantee an immediate launch of Ethereum ETFs. As fellow Bloomberg analyst James Seyffart clarified:
“We’ve increased the odds to 75% for spot #Ethereum ETF approvals—but that’s for the 19b-4 May 23 deadline. We still need S-1 registration statements approved. It could take weeks or even months before we see actual ETFs go live.”
This means that while exchange listing rules may be cleared soon, the final green light from the SEC on formal registration documents (S-1 filings) remains pending. Investors should remain cautious about expecting immediate product rollouts.
Broad-Based Gains Across Top Cryptocurrencies
The positive momentum wasn’t limited to Bitcoin and Ethereum. Nearly all top 10 cryptocurrencies posted strong gains over the past 24 hours:
- Dogecoin (DOGE) led the pack with a +9.44% surge
- Solana (SOL) followed closely with an +8.83% increase
- Other major coins including BNB, XRP, and Cardano saw gains between 4% and 7%
This broad rally reflects growing market confidence amid favorable macro conditions and increasing institutional interest in crypto-based financial products.
Why Altcoins Are Responding So Strongly
Altcoin performance often correlates with Bitcoin dominance and broader risk appetite. With BTC stabilizing above $70K and ETF speculation heating up, traders are rotating capital into higher-beta assets. Solana’s recovery, in particular, signals renewed faith in scalable smart contract platforms beyond Ethereum.
BNB’s move past $600 aligns with increased activity on Binance Smart Chain and growing adoption of its ecosystem in decentralized finance (DeFi) and Web3 applications.
$350 Million in Liquidations Amid Volatile Price Action
Despite the bullish price action, the sharp upward move triggered significant pain for leveraged traders—especially those betting against the market. According to data from Coinglass, over $350 million in long and short positions were liquidated in the past 24 hours.
Of this total:
- $272 million came from short (bearish) positions
- More than 85,000 individual traders were liquidated
This “short squeeze” effect amplified the rally, as forced buy-backs from margin calls pushed prices even higher. Such events are common during sudden volatility spikes and underscore the risks of high-leverage trading in crypto markets.
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Key Questions About Ethereum ETFs – Answered
To help clarify the current situation and separate hype from reality, here are some frequently asked questions:
Q: Does a 75% approval chance mean Ethereum ETFs will launch soon?
A: Not necessarily. While the 19b-4 rule change approval increases the possibility, the SEC must also clear S-1 registration filings. This process could take weeks or months.
Q: Which firms have filed for spot Ethereum ETFs?
A: Major financial institutions including VanEck, BlackRock, Fidelity, Grayscale, and Ark Invest have submitted applications. Their progress is being closely monitored by regulators.
Q: How would a spot Ethereum ETF impact the market?
A: Similar to Bitcoin ETFs, it would provide institutional investors with regulated exposure to ETH, likely driving increased demand and price stability over time.
Q: Could the SEC still reject Ethereum ETFs?
A: Yes. Despite rising odds, regulatory concerns around Ethereum’s classification—as either a commodity or security—remain unresolved. Michael Saylor has previously suggested the SEC might classify ETH as a security, which could delay or block approvals.
Q: What happens if the S-1 is delayed?
A: Delays in S-1 approvals would postpone the actual launch of ETFs, potentially cooling short-term market enthusiasm but not necessarily altering long-term outlooks.
Hong Kong Expands Access to Crypto ETFs
In related news, Hong Kong continues to position itself as a pro-innovation crypto hub. Harvest Fund International recently announced plans to open access to Bitcoin and Ethereum spot ETFs for mainland Chinese investors via the Stock Connect program, potentially within two years.
Additionally, leading market maker Wintermute has entered the Hong Kong market, pledging liquidity support for local spot crypto ETFs. These developments signal growing global acceptance of digital asset investment vehicles—even as U.S. regulators proceed cautiously.
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Final Thoughts: Bull Run With Caution
The current rally demonstrates how powerful regulatory sentiment can be in driving crypto markets. While Bitcoin reclaiming $70K is psychologically significant, investors should remain mindful of overleveraged positions and speculative fervor.
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As we move deeper into 2025, continued progress on regulatory clarity—especially around Ethereum—will likely shape market direction. For now, the bulls are in control, but volatility remains a constant companion in this fast-moving space.
Stay informed, manage risk wisely, and watch for further updates on S-1 filings—the true gatekeeper to live Ethereum ETFs.