Renewed optimism about the ETF boosts Ether's rally.

• On Monday, the price of ether surged by 20%, and it has continued to rise since then.
• The SEC has requested document updates from potential ETF issuers and exchanges, causing investors to reconsider the likelihood of the SEC approving spot ether ETF applications.
• The previous consensus was that such funds would likely not be approved.

The price of cryptocurrencies increased on Tuesday due to a surge in optimism about the U.S. Securities and Exchange Commission's upcoming decisions on spot ether exchange-traded funds applications.

On Monday, Bitcoin led the rally, rising 20%, and on Tuesday, it continued to surge, increasing by 9% to $3,680.98, according to Coin Metrics.

Meanwhile, the stock price increased by 2% and was trading at approximately $71,350, surpassing the $70,000 level and extending an 8% increase from the previous day.

Several crypto-related equities experienced gains in extended trading, with Bitcoin mining stocks leading the way. Specifically, Bitcoin mining stocks such as Riot Blockchain, Marathon Digital Holdings, and Iris Energy saw gains of around 3%.

The SEC's request for document updates from potential ETF issuers and exchanges has led investors to question the likelihood of spot ether ETFs being approved, as the previous consensus was that they would not be approved.

After rumors circulated that the SEC might approve spot ETH ETFs this week, ETH spiked upwards, according to Bartosz Lipiński, CEO at Cube Exchange.

The approval of spot bitcoin ETFs earlier in the year was similar to this situation, and it seems like a "buy the rumor, sell the news" scenario. I believe there will be a rally through this Thursday, followed by a brief selloff, regardless of whether or not the funds are approved.

The final decisions on VanEck's and Ark Invest's applications will be made on Thursday and Friday, respectively.

This year, BlackRock, Fidelity, Invesco, Grayscale, and Bitwise Asset Management have pending applications.