Bitcoin prices were little changed on Monday on concerns over higher interest rates ahead of key US inflation data this week, while ether saw an extended rally on progress made on the creation of a spot exchange-traded fund. 

Other cryptocurrency prices were also subdued, as traders continued to lean towards the dollar amid waning optimism about interest rate cuts by the Federal Reserve this year.

However, the global No. 2 token Ether was trading near two-month highs, up 2.2 percent at $3,897.5. 

The SEC’s approval of a spot ETF has significantly boosted Ether

Ether, the world’s second most valuable cryptocurrency, saw a big boost over the weekend as the Securities and Exchange Commission approved applications from several major exchanges to list ETFs that directly track the price of Ether. 

The approval now clears the way for the SEC to approach fund operators such as VanEck, ARK Investment Management and seven other issuers that have applied to list their spot Ether ETFs.

Experts expect the approval of spot ETFs to trigger a sharp rise in Ether, similar to that experienced by Bitcoin following the approval of spot Bitcoin ETFs earlier this year. 

However, Bitcoin has stagnated in recent months as the initial enthusiasm for ETFs has dried up. Capital flows into Bitcoin ETFs have stagnated in recent weeks.

Cryptocurrencies trading today: altcoins soften ahead of key economic indicators

Fears of higher US interest rates for longer were a key point of stress in cryptocurrency markets in recent weeks, particularly as several Federal Reserve officials warned that persistent inflation would delay any plans to cut rates.

This sentiment has kept altcoin prices at very low levels, with XRP declining and SOL increasing.

DOGE, the meme token, gave up 1.6%, while SHIB was up around 3%.

The focus this week will be on the PCE price index data, the Federal Reserve’s preferred inflation gauge. The reading is expected to affect the outlook for interest rates.