LONDON (Reuters) – Ether posted its biggest two-day gain in almost two years on Tuesday amid speculation about the outcome of applications for U.S. exchange-traded funds that track the world’s second-largest cryptocurrency, while Bitcoin also edged closer to a record high .

Ether, which underpins the Ethereum blockchain network, was 8% higher on the day at $3,775, the highest in two months, after rising 13.8% on Tuesday.

The most popular cryptocurrency, Bitcoin, recently rose 2.2% to $71,000, about 4% lower than its March high of $73,803.25.

The U.S. markets watchdog will issue its decision this week on certain uses of spot ETFs. Analysts and investors say Tuesday’s jump was the result of unconfirmed talk that the Securities and Futures Commission might approve the products, after investors previously thought they would be rejected.

skyrocketed earlier this year after the SEC approved several cash bitcoin ETFs that saw billions of dollars inflow.

So far in 2024, bitcoin is up 67%, but ether is currently right behind it, up 60%.

“took pole position in the recent cryptocurrency rally ahead of Thursday’s first SEC deadline for an ETH ETF decision,” said Ben Laidler, global markets strategist at eToro, using an ether market ticker.

“Immediate approval is a long way off, but any guidance on the path to eventual approval would be a big step forward.”

VanEck, ARK Investment Management and seven other issuers have filed an application with the SEC to list spot ETFs. The SEC must make a decision on VanEck’s and ARK’s applications, which are first in line, by May 23 and 24, respectively.

Joseph Edwards, head of research at Enigma Securities, cited reports that the SEC has asked exchanges that list ether ETFs to update their data and separate Bloomberg ETF research that showed analysts increased informal probability of approval of these funds.

An SEC spokesman said it does not comment on individual filings.

“The opposition to the ETH ETF following the BTC approval always seemed like an odd case for the SEC to try to force, unless it was willing to ask questions more broadly about the status of Ethereum securities, and it is likely that a call has come from somewhere not to take that fight,” Edwards said.

Cryptocurrency markets rallied again last week after data showing slowing U.S. inflation sent risky assets higher.