Ethereum Trouncing Bitcoin, ETH/BTC Ratio Bouncing Higher: Will This Trend Continue?
16 Januar 2024 - 6:00PM
NEWSBTC
Amidst a volatile crypto market, Ethereum (ETH) is gaining
momentum, outperforming its long-time rival Bitcoin (BTC).
According to Kaiko data, the ETH/BTC ratio has steadily risen,
rebounding from multi-year lows. ETH/BTC Ratio Rising, ETH
Momentum Building The ETH/BTC ratio technically gauges market
sentiment towards these two leading crypto. The recent rebound
indicates investors are increasingly bullish on Ethereum’s
potential relative to Bitcoin. This upward trajectory is
fueled by growing optimism surrounding the potential approval of
spot Ethereum ETFs and the general confidence that markets will
trend higher in 2024. The prospect of this product entering the
market has also injected fresh energy into the ETH ecosystem,
lifting the second most valuable coin by market cap. Related
Reading: Institutional Inflows Into XRP Surges 244% Amid ETF
Speculation After protracted lower lows, the ETH/BTC ratio began
rising immediately after the United States Securities and Exchange
Commission (SEC) approved 11 spot Bitcoin ETFs last week. This
unexpected shift, analysts observe, is primarily because of
increasing confidence in the SEC approving a similar product for
ETH. Spot Ethereum ETFs, which would provide direct exposure to the
Ethereum market, would make it easier for institutional investors
to benefit from the volatility of ETH. So far, the SEC has approved
an Ethereum Futures ETF, which, unlike the spot ETF, tracks an
index, not the direct price of this asset. Blackrock is among the
leading Wall Street giants interested in issuing a spot Ethereum
ETF. Considering its history of success, the decision by one of the
world’s leading asset managers to apply for this product is an
endorsement of its prospects. Earlier, Larry Fink, the CEO of
BlackRock, said Ethereum, despite its scaling challenge, might
spearhead the tokenization drive in the years ahead. US SEC Yet To
Clarify Whether Ethereum Is A Commodity Or Security Even so, the
SEC has yet to clarify whether ETH, a coin pre-mined with some
assets distributed to the Ethereum Foundation, is a commodity like
Bitcoin. Earlier, Gary Gensler, the chairperson of the SEC, was
cornered by the United States policymakers to give the agency’s
stand on the coin but didn’t. Related Reading: XRP Investors Become
Fearful: Time To Buy? Nonetheless, with the prospect of spotting
Ethereum ETFs and the dominance of Ethereum in decentralized
finance (DeFi) and non-fungible tokens (NFTs), ETH will likely
continue outperforming BTC in the coming months. Price action data
shows that ETH is already up 20% versus BTC in the past trading
week. Feature image from Canva, chart from TradingView
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