The crypto market is up today as Bitcoin (BTC), Ether (ETH), Cardano (XRP), Solana (SOL) and numerous altcoins rallied as investors’ positive sentiment toward crypto continues to rise. The positive growth was led by Ether, which hit a 6-month high after news that BlackRock’s spot Ethereum ETF for the Nasdaq was confirmed.

Let’s examine three major factors influencing today’s crypto market rally.

Institutional investors and fund managers are looking to invest in Ether

On Nov. 9, BlackRock’s plans for a spot Ether exchange-traded fund (ETF) were confirmed through a 19b-4 form filing submitted to the United States Securities and Exchange Commission (SEC). After the confirmation, Ether price surged 12.2%, outperforming Bitcoin for the first time in months.

BlackRock’s potential foray into the Ether market indicates that institutional investors are becoming more interested in the cryptocurrency market. Institutional involvement in the crypto market could lead to a significant influx of capital into the Ether market, further driving up prices.

In addition to BlackRock’s potential spot Ether ETF, Bloomberg analyst James Seyffart says at least five firms will try to win the SEC’s approval.

There are 5 other live spot Eth filings that i’m aware of:@vaneck_us @ARKInvest/ @21Shares @hashdex @InvescoUS/ @galaxyhq
andddd @Grayscale‘s filing to convert $ETHE.

In no particular order.

— James Seyffart (@JSeyff) November 9, 2023

Related: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers

The growing institutional interest is improving sentiment across the market. Activity in the options market suggests that Ether’s outperformance is not just a one-off event and could continue in the near term. The Chicago Mercantile Exchange (CME), which major institutions utilize, surpassed Binance futures on Nov. 9 after $1 billion of open interest was wiped from the market.

We’ve now been officially insitutionalized

Notable this major regime change happens on the day that Blackrock all but confirmed their ETF will be approved

Old guard market makers carried out in body bags in both options and perps this month

The king is dead long live the king https://t.co/vuYtIOPEmB

— JJ the Janitor (@JLabsJanitor) November 9, 2023

Institutional investors are not the only group feeling optimistic about the crypto market. As measured by the Bitcoin Fear & Greed Index, improved sentiment can also be seen in retail, noting a 23-point increase over the last month.

Total value locked and trade volumes spike

The positive sentiment in the crypto market is rippling throughout the ecosystem. Bitcoin and crypto market trading volume reached $44.1 billion on Nov. 9. The increase is the highest level of total trading volume since March 14.

Trading volume is not the only metric that is breaking multiple-month highs. The total value locked (TVL) on Nov. 9 has reached its highest level since June 3. The TVL increase to $46.5 billion marks a 3.7% 24-hour increase.

There is optimism surrounding the increase in volume, which can help break November’s 2-year losing streak when it comes to returns.

Related: Is it altseason? Altcoin 30-day performance and total market cap flash bullish

While Bitcoin and altcoins still have overhanging risk events that could impact the price, the increasing institutional interest and improved trading volumes are strong indications the bear market may have ended.

Overall, crypto markets are likely to continue to experience price volatility. While the positive institutional interest is providing a nice short-term bump in crypto prices, the market’s reaction to any new enforcement actions or an economic recession will be the true determinant of the direction the market chooses to take.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.