Ethereum is likely to outperform Bitcoin in the medium term as the market anticipates possible spot acceptance. ETH
-2.93%
The ETF was recently announced by QCP Capital. Market update report.
Ethereum prices are up more than 5% in the week since the Securities and Exchange Commission approved several spot Bitcoin ETFs in the U.S., according to The Block’s pricing page. On the other hand, the price of Bitcoin fell more than 6% during the same period.
“We expect Ethereum to outperform Bitcoin in the medium term as talk changes about the potential approval of an Ethereum spot ETF,” QCP Capital analysts said.
QCP Capital’s Wednesday market update highlighted that the ETH/BTC exchange rate rose from 0.05 to 0.06 last week. “The next major cryptocurrency events are the Bitcoin halving in mid-April and the possible approval of a spot Ether ETF in May,” the QCP report added.
Larry Fink Hints at a Spot Ether ETF
The possibility of a spot ether ETF gained momentum last week after BlackRock CEO Larry Fink expressed that he “sees value” in holding such a product in the United States.
“I see value in holding an Ethereum ETF. As I mentioned, it’s just a stepping stone towards tokenization,” Fink said. interview CNBC conducted after the first trading day of the company’s new spot Bitcoin ETF product.
BlackRock, the world’s largest asset management company, applied for a spot Ether ETF to the SEC in November last year, five months after applying for a spot Bitcoin ETF product in June.
Ethereum supply surges in profits compared to Bitcoin
From last week’s gains, Ethereum’s circulating supply increased while Bitcoin’s decreased. Currently, Ethereum’s circulating supply ratio is at a multi-year high of 91.8%, while Bitcoin’s supply-to-profit ratio has fallen to 86.2%.
Ethereum is down 1.4% over the past 24 hours, trading at $2,529 at 12:45 PM ET, according to The Block’s pricing page.
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