Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization, are consolidating their recent gains this morning as the crypto market braces for a potential milestone event. The Securities and Exchange Commission (SEC) is expected to deliver its decision on VanEck's spot Ether ETF application later today, a ruling that could have far-reaching implications for the industry.
At the time of writing, BTC is relatively stable, down about 3% in the last 24 hours at $67,900, while ETH has risen nearly 1.4% to over $3,780.
Despite the muted price action, the general outlook for BTC and ETH remains bullish. Options data on derivatives exchange Deribit continues to reveal a bias for call options, or contracts that allow traders to profit from price rises, according to data tracked by Amberdata.
ETF Hopefuls Make Last-Minute Filings
In a flurry of activity ahead of today's anticipated decision, several prominent firms filed amended 19b-4 forms with the SEC for their proposed spot Ether ETFs. BlackRock, Grayscale, and Bitwise removed the staking provisions that some commentators believed were causing regulatory roadblocks.
Staking, the process of locking specific cryptocurrencies for a set period to help support the operation of a blockchain for a reward, is considered mainly passive income among crypto traders. By removing these provisions, the firms aim to alleviate any potential concerns from regulators.
Fidelity filed its amended proposal earlier this week, with VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares following suit. Hashdex remains the only issuer yet to file an amendment to its Ethereum ETF.
Nvidia Rally Boosts AI Tokens
In a potentially positive development for the crypto market, shares in Nvidia reached a record high during Wednesday's post-market hours after the company beat analyst estimates to report record revenue of $26.04 billion for the first quarter.
Historically, inflows into the crypto market and the so-called AI coins have been partly contingent on outsized gains in Nvidia (NVDA) and the tech-heavy Nasdaq index. This rally might serve as a tailwind for cryptocurrencies, including tokens supposedly associated with AI technology.
Top AI coins such as FET, ICP, RNDR, and GRT traded mixed, having rallied in the lead-up to the Nvidia announcement.
Conclusion
As the crypto community awaits the SEC's decision on the spot Ether ETF, the market appears to be in a holding pattern, with Bitcoin and Ether consolidating recent gains. However, the bullish sentiment remains intact, and the industry is poised for significant movement depending on the outcome of today's ruling.
