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Investing.com-- price jumped sharply on Tuesday, tracking a rally in Ether after a media report flagged some progress towards the approval of spot-Ether exchange-traded funds for U.S. markets.

The worlds largest cryptocurrency rose 6.6% in the past 24 hours to $71,349 by 08:47 ET (12:47 GMT).

But world no.2 token Ether was the star performer on Tuesday, surging 22.5% to a 1- month high of $3,776.1.

A report from Coindesk showed that the U.S. Securities and Exchange Commission asked applicants for spot Ether ETFs to update some key filings, ahead of a key deadline for the approval of the funds later this Thursday.

While the report said that there was still no guarantee that the regulator will approve the ETFs, it did mark some progress towards an eventual approval.

Bloomberg analysts Eric Balchunas and James Seyffart updated their expectations for a spot Ether ETF approval to a 75% probability from 25%, citing the Coindesk report and stating that the SEC could be doing a 180 on a potential approval.

The SEC was seen largely averse towards a spot Ether ETF, especially as recent reports said the regulator was also pursuing action against the Foundation over Ethers potential nature as a security.

But a spot ETF approval could trigger a similar rally in Ether as it did for Bitcoin earlier in 2024, where the token surged to a record high on increased capital inflows as institutional investors piled into the ETFs.

Data from digital assets manager CoinShares showed on Monday that crypto investment products saw a second straight week of capital inflows, as some soft readings on U.S. inflation ramped up bets that the Federal Reserve will cut interest rates this year.

Total capital inflows were at $932 million in the week to May 20, with Bitcoin continuing to dominate capital flows. Still, overall trading volumes remained well below peaks seen in the aftermath of the spot-Bitcoin ETF approvals in February and March.

Altcoins drifted higher, tracking gains in Ether. rose 1.2%, while added 6%.

Meme tokens and SHIB climbed 10.5% and 8%, respectively.

House Democrats Maxine Waters (NYSE:) (D-Calif.) and David Scott (D-Ga.) have voiced to their colleagues their strong opposition to the Financial Innovation and Technology for the 21st Century Act, also referred to as the crypto bill.

However, despite this stance, the pair is not actively urging members to vote against the bill, as reported by Politico.

Waters and Scott argue that the bill undermines established legal precedents and creates uncertainty in the traditional securities market.

They claim the bills safe harbor provision, allowing entities to file an "intent to register" if they meet certain requirements, effectively shields these entities from existing securities laws until the SEC and CFTC finalize new regulations.

This, they argue, "weakens investor protections and opens the door to fraud and market manipulation," the email said.

The letter also states that if the bill becomes law, it would prevent shareholders from suing publicly traded companies, override state regulations regarding digital assets, weaken fiduciary requirements, and undermine capital markets.

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Bitcoin price today: jumps to $71k on spot Ether ETF speculation - Investing.com