Amidst recent market dynamics, Ether (ETH) has witnessed a remarkable surge of up to 9% within the last 24 hours, fueled by rising optimism surrounding the potential approval of a spot Ethereum Exchange-Traded Fund (ETF). The catalyst behind this surge is the recent approval by the U.S. Securities and Exchange Commission (SEC) of spot Bitcoin ETFs on Wednesday.
ETH prices experienced a notable uptick, reflecting a 9% increase in the wake of the SEC’s nod to spot Bitcoin ETFs. Investors are now turning their attention to Ethereum, anticipating a similar green light for spot ETFs. Unlike Bitcoin, which has already seen the approval and launch of futures ETF products, Ethereum’s spot ETF applications await a decision by the SEC.
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Mark Connors, Head of Research at Canadian digital asset management firm 3iQ, emphasized ETH’s recent outperformance relative to BTC as an indication of the market’s anticipation of a spot ETF approval. While Bitcoin remained relatively flat over the past 24 hours, the optimism surrounding a spot Bitcoin ETF has been a driving force behind its price surge, with an 80% increase since BlackRock and Fidelity filed their ETF applications last June.
The disparity in performance between Bitcoin and Ethereum over the last year, with Bitcoin gaining about 174% compared to Ethereum’s 99%, is attributed to the narrative around Bitcoin’s rally linked to spot ETF approvals.
With attention now shifting to Ethereum ETF approvals, analysts speculate on whether ETH will experience a similar surge. However, some caution against expecting an identical scenario, citing fundamental differences between Bitcoin and Ethereum. SEC Chair Gary Gensler’s stance on Bitcoin not being considered a security raises questions about the path for Ethereum, but industry experts remain optimistic about the approval of spot Ethereum ETFs.
Investors eagerly await the SEC’s decision on spot ETFs for Ethereum, with offerings from notable firms like VanEck, ARK Invest 21Shares, and BlackRock awaiting approval by May. Despite regulatory uncertainties, Neena Mishra, ETF Research Director at Zacks Investment Research, sees minimal obstacles to the approval of spot Ethereum ETFs, highlighting the continued evolution of the crypto market.
