ARB, OP, MATIC, IMX, MNT: Ethereum L2 tokens on a tear as SEC approves all spot Bitcoin ETFs

Ethereum Layers 2 tokens are the top performers amid the climaxing spot BTC ETF euphoria.
Arbitrum and Optimism are leading the sector, while Polygon, Immutable X, Mantle and SKALE are recording double-digit gains.
The speculation that a spot ETH ETF could come after Bitcoin’s has initiated an Ether Season, with Ethereum price up 9%.

Lockridge Okoth FXStreet

Ethereum (ETH) price is trading with a bullish bias, coming on the back of anticipation that an ETH spot exchange-traded fund (ETF) will come to the market shortly after the US Securities and Exchange Commission (SEC) has approved the launch of the BTC ETF. The overflows from the ETH market have spilled to the blockchain’s Layer 2 (L2) tokens.

Also Read: Ethereum price eyes $2,800 as spot Bitcoin ETF hype raises hopes that ETH could be next

Ethereum L2s pump amid possible Ether season

Ethereum L2s, among them, Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Immutable X (IMX), Mantle (MNT) and SKALE (SKL) are recording double-digit gains. This has inspired thoughts of a possible Ethereum season setting in, instigated by a push for ETH ETF with L2s going on a tear.

Next is #Ethereum ETF and L2 season.
— Endo (@ultrasoundape) January 10, 2024

Now that BTC ETF has been approved, ETH ETF could be the next mania, with several participants in the crypto sector, including Valkyrie Fund CIO Steven McClurg, already envisioning an ETH ETF launch.

NEW: @ValkyrieFunds Chief Investment Officer @stevenmcclurg says it wouldn’t surprise him if he saw “Ripple” ($XRP) and Ethereum spot ETFs coming to market now that the @SECGov is about to approve one for Bitcoin. pic.twitter.com/EBcwvbgChs
— Eleanor Terrett (@EleanorTerrett) January 9, 2024

Among the firms that have already applied for a spot ETH ETF approval include VanEck, Ark 21Shares, Hashdex, Grayscale, and Invesco Galaxy.

ARB/USDT 1-day chart, OP/USDT 1-day chart, MATIC/USDT 1-day chart, IMX/USDT 1-day chart, MNT/USDT 1-day chart, SKL/USDT 1-day chart

Among the key factors contributing to the strength seen among the L2s is their dominance in terms of total value locked (TVL), with ARB topping the sector. Based on data from decentralized finance L2Beat, Arbitrum boasts a market share of 49.28% among L2s, followed by Optimism with 28.77%.