Bitcoin saw a significant price surge on Tuesday, following a rally in Ether, as reports suggested progress towards the approval of spot-Ether exchange-traded funds (ETFs) for U.S. markets.

The world’s largest cryptocurrency experienced a 5.8% increase over the past 24 hours, reaching $70,987.1 by 01:08 ET (05:08 GMT). However, Ether, the second-largest token globally, stole the spotlight by surging 17% to reach a 1-½ month high of $3,656.01.

A report from Coindesk indicated that the U.S. Securities and Exchange Commission (SEC) had requested applicants for spot Ether ETFs to update certain key filings ahead of a significant deadline for ETF approval later this Thursday. While the report did not guarantee approval, it signified progress toward potential approval.

Bloomberg analysts Eric Balchunas and James Seyffart revised their expectations for spot Ether ETF approval from 25% to 75%, citing the Coindesk report. They suggested that the SEC might be reconsidering its stance, potentially leading to a shift in favor of approval.

Previously, the SEC had shown reluctance towards spot Ether ETFs, especially amid reports of potential regulatory action against the Ethereum Foundation regarding Ether’s classification as a security. However, approval of a spot ETF could trigger a similar rally in Ether as seen earlier in 2024 when Bitcoin reached a record high following increased institutional investment through ETFs.

In other crypto news, data from digital assets manager CoinShares revealed that crypto investment products witnessed a second consecutive week of capital inflows. This trend emerged as softer readings on U.S. inflation fueled speculation of interest rate cuts by the Federal Reserve this year. Total capital inflows amounted to $932 million for the week ending May 20, with Bitcoin dominating the inflows. Despite this, overall trading volumes remained below the peaks observed after the approval of spot-Bitcoin ETFs in February and March.

Altcoins also experienced gains, tracking Ether’s surge. Solana rose by 3.6%, while XRP added 3.7%. Meme tokens like Dogecoin and SHIB saw increases of 6.6% and 4.7%, respectively.