It's been a wild ride in the cryptocurrency world this week, but it's mostly been a ride higher for investors in the largest blockchain projects. Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) have seen some remarkable moves higher over the past week, surging 3.3%, 28.7% and 5% over the past week, as of noon ET on Thursday.

The story this week that appears to be providing the rising tide lifting the boats of all large-cap digital assets is the expectation that a ruling should be forthcoming this week as to whether the Securities and Exchange Commission (SEC) will approve spot Ethereum ETFs.

Bitcoin went on a run heading into the ultimate approval of spot ETFs for that crypto, and there was a flood of capital into this asset. This is a clear and meaningful catalyst for the overall sector and could lead to other similar products down the line.

Let's dive into each of these tokens and what to watch in the week ahead.

Are spot Ethereum ETFs coming?

Some level of uncertainty remains on the ultimate decision from regulators for both the VanEck spot Ethereum application (due sometime later today) and the ARK 21Shares ETF application due tomorrow. Earlier this week, expectations were that we wouldn't hear anything until next week at the soonest. Accordingly, with the timeline moved up, investors will soon see whether these bullish bets were correct.

Potential capital flow into Ethereum could disrupt inflows into Bitcoin-focused spot ETF funds. Thus, the price action we're seeing with Bitcoin heading into this announcement isn't surprising. Ethereum's gain should (at least somewhat) be Bitcoin's loss, though it's worth noting that Bitcoin has still trended positively on this news, since it's good for the broader sector.

Dogecoin's price action appears to be relatively detached from the top two cryptocurrencies by market capitalization. That said, expectations of greater liquidity in this space courtesy of institutional investors have traders ramping up on more-speculative bets to capture the maximum amount of upside today.

Where to go from here

Personally, I think the safest place to be right now when it comes to these top digital assets is on the sidelines. Yes, there's some major upside potential should the SEC rule in favor of spot Ethereum ETFs. But I think the downside risk of a "no" could outweigh any future gains (and to be sure, a lot has already been priced in).

Various regulators have displayed different levels of enthusiasm for these spot Ethereum ETF products, so the outcome remains uncertain. Until we have an approval on the books, this is a catalyst I don't think is worth trading on right now.

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Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Why Bitcoin, Ethereum, and Dogecoin Surged Higher This Week was originally published by The Motley Fool