Ethereum Surges Over 20% in 2025 Amid Rising Hopes for Spot Ether ETF Approval

Key Highlights

• Ether price surged more than 20% in early 2024 trading before slightly retracting.
• The surge is linked to growing confidence in a spot Ether exchange-traded fund (ETF) approval.
• Renewed optimism followed the SEC’s request for exchanges to update relevant ETF filings.

In 2024, Ethereum's native cryptocurrency, Ether (ETH), experienced a significant price rally, climbing over 20% before settling back modestly. This movement reflects increasing investor confidence fueled by progress in the approval process for spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC).

Why Is There Renewed Optimism for Ether ETFs?

Following the successful launch of Bitcoin (BTC) spot ETFs earlier this year, the crypto community eagerly anticipated similar developments for Ether ETFs. Initial concerns from the SEC about Ether's classification as a security and issues regarding staking had previously slowed progress.

However, recent actions by the SEC suggest movement forward. The regulator has asked exchanges to expedite updates to their 19b-4 filings related to spot Ether ETFs, a procedural step reminiscent of the Bitcoin ETF approval journey.

Notably, Fidelity amended its Ether ETF application by removing staking rewards, addressing a major regulatory concern. Staking involves locking Ether to validate network transactions and earn rewards, which the SEC controversially views as a securities offering.

By eliminating staking from its application, Fidelity aims to align its ETF product with SEC expectations, boosting investor and analyst confidence.

Market sentiment has shifted dramatically: Bloomberg analyst Eric Balchunas raised the odds of SEC approval to 75%, up from 25%, while Polymarket’s prediction for Ether ETF approval soared to 60% from just 10% the previous day.

When Can Investors Expect Final Approval?

The SEC’s decision on VanEck’s 19b-4 filing is due by Thursday, but even after approval, weeks or months may pass before an Ether ETF officially launches.

Experts note that while the removal of staking is expected, the unchanged commodity grantor trust structure signals that the SEC may be solidifying its stance against classifying Ether as a security.

Though the timeline remains uncertain, these developments mark encouraging progress for the crypto market’s long-anticipated Ether ETF products.

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