The crypto market has witnessed a remarkable surge today, with major cryptocurrencies like Bitcoin, Ethereum, Solana, XRP, and Dogecoin rallying to new heights. This bullish momentum reflects the growing confidence of investors in the digital asset space, driven by a combination of factors.

Ethereum ETF Approval Optimism Boosts Market Confidence

The increasing likelihood of the U.S. SEC approving a Spot Ethereum ETF has been a significant catalyst for the market's optimism. Ethereum (ETH), the second-largest cryptocurrency, has surged nearly 20% in the past 24 hours, fueled by this positive sentiment. Senior Bloomberg analysts now estimate a 75% probability of ETF approval, up from 25% earlier.

The first decision on the VanEck Spot Ethereum ETF is expected by Thursday, May 23, potentially causing further price volatility. However, with soaring optimism, Ethereum's price has climbed above $3,650 for the first time since April 9. This bullish trend has had a ripple effect on the broader altcoin market, with significant gains across various digital currencies.

Bullish Predictions and Inflows into Bitcoin ETFs

Several market pundits have provided a bullish outlook for Ethereum's price, with QCP Capital suggesting that if the Ethereum ETF receives approval, the ETH price could hit $4,000 in the short term and $5,000 by the end of the ongoing year. Crypto market analyst Miles Deutscher has predicted that Ethereum could rally to $6,400 by July end, drawing parallels with Bitcoin's performance following the Spot Bitcoin ETF approval in the U.S.

The U.S. Spot Bitcoin ETF has continued to attract attention from global market participants, with significant inflows. According to Farside Investors, the overall inflow into the Spot Bitcoin ETFs was $237.2 million on Monday, May 20, with Ark Invest's ARKB and BlackRock's IBIT recording substantial fund flows.

Regulatory Clarity Boosts Investor Confidence

The crypto market rally has also been driven by significant regulatory developments in the U.S. The Blockchain Association recently sent a letter to Speaker Johnson and Representative Jeffries, urging legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act). This proposed act aims to provide a clear regulatory framework, fostering innovation while ensuring consumer protection.

The letter, backed by the Crypto Council for Innovation and 60 other entities, highlights the industry's consensus on the necessity of this legislation. Influential firms like Andreessen Horowitz, Coinbase, and Circle, along with key lawmakers, have endorsed the bill. The FIT21 Act seeks to define the jurisdiction of digital assets between the CFTC and SEC, promising safer and more efficient markets. This regulatory clarity is anticipated to boost investor confidence and drive sustainable growth in the crypto sector.

As of writing, Bitcoin's price has surged 6.11% over the last 24 hours, trading at $70,918.95, with its one-day trading volume rising 129.96% to $52.87 billion. Ethereum's price has risen 17.80% to $3,655.47, while Solana's price has jumped 2.32% to $181.68. XRP's price has noted gains of 5.67% to $0.5431, and Dogecoin's price has added 8.40% to $0.1643.

The crypto market's positive momentum, fueled by Ethereum ETF approval optimism and regulatory clarity, has set the stage for a sustained rally in the digital asset space. As investors regain confidence, the crypto market is poised for further growth and adoption.