In a significant development for the cryptocurrency market, open interest for Ethereum (ETH) futures contracts has surged to a record high, reaching $15.5 billion on Tuesday. The spike in interest came in response to rumors suggesting that the United States Securities and Exchange Commission (SEC) was nearing approval for ETH exchange-traded funds (ETFs) this week.

The optimistic sentiment has triggered a flurry of upward movement across various markets. CoinGlass analysis reveals that open interest on all crypto exchanges has also reached a peak, with 4.13 million ETH traded, representing a 32% surge within a 24-hour period. Deribit CEO Luuk Strijers commented on the unprecedented trading volume, indicating that market participants are positioning themselves to capitalize on the potential approval of ETH ETFs.

Futures contracts, widely used in the derivatives market, are agreements that allow traders to speculate on the future price movements of an underlying asset. The surge in futures trading demonstrates heightened market activity and investor interest, as they anticipate the potential approval of ETH ETFs.

This remarkable turnaround marks a shift in fortune for Ethereum, the second-largest cryptocurrency. Industry observers and analysts had previously expected the SEC to miss the May 23 deadline for approving a spot ETH ETF. However, Bloomberg's ETF analysts reported yesterday that the regulator is poised to grant the green light, following indications that fund managers have begun updating paperwork for potential ETH ETF products.

Ethereum's price has experienced a remarkable surge in response to these developments. As of the latest data from CoinGecko, ETH is currently trading at $3,752, reflecting a 19% increase in just 24 hours. The positive momentum in the crypto market is not limited to Ethereum, with nearly all other coins and tokens experiencing notable gains. Bitcoin, the leading and oldest cryptocurrency, briefly surpassed $70,000 per coin, but has since settled at $69,753.

Meme coins and altcoins such as Solana and Avalanche have also witnessed significant surges in value. Several prominent asset managers have submitted paperwork to the SEC with the intention of launching a spot ETH ETF in the United States. If approved, this would provide ordinary investors with an avenue to gain exposure to Ethereum by purchasing shares that track the cryptocurrency's price, further solidifying its position as the second-largest digital asset by market capitalization.