Ether Leads Bitcoin as Hype Shifts to Next Wave of Crypto ETFs

Rising Interest in Ether ETFs Spurs Competition with Bitcoin as Cryptocurrency Markets Experience Volatility

Feb 21, 2024 - 06:52
Feb 21, 2024 - 06:52
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Ether Leads Bitcoin as Hype Shifts to Next Wave of Crypto ETFs
Ether Leads Bitcoin as Hype Shifts to Next Wave of Crypto ETFs

Ether, the second-largest cryptocurrency, is stealing the spotlight from Bitcoin as investors anticipate the launch of new exchange-traded funds (ETFs) in the United States. This shift in attention comes as Ether's value has risen by 28% this year, outpacing Bitcoin's 21% increase. In the past 24 hours, Ether hit $3,000 for the first time since April 2022 before dropping to $2,920 by 11:00 a.m. on Wednesday in London amid a broader sell-off in the cryptocurrency market.

Following the approval of the first spot Bitcoin ETFs in January, which have attracted $5.2 billion in investments, focus has turned to the potential approval of Ether ETFs. While some see this as a positive sign, others are skeptical and expect regulatory challenges.

Stefan von Haenisch, head of trading at OSL SG Pte in Singapore, believes Ether will continue to perform better than Bitcoin until the possible approval of ETFs in April-May. However, he doubts whether SEC Chair Gary Gensler will approve Ether ETFs without legal pressure.

In the derivatives market, CME Group's Ether futures marketplace has seen a surge in interest, indicating growing demand for Ether among institutional investors.

Ether, which powers the Ethereum blockchain platform, allows investors to earn rewards through staking, a process that has reached a record 25% participation rate. This staking activity reduces the available supply of Ether, potentially supporting its price.

Also Read: Bitcoin Potential: From $1,000 Investment to $50,000 and Beyond

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