In the medium term, Ethereum is expected to surpass Bitcoin in price growth as market participants anticipate the approval of a spot ETF for the second-largest cryptocurrency by market capitalization in the United States. This is according to a report by QCP Capital.
In the week following the SEC‘s approval of 11 applications for new products, digital gold declined by more than 7%. Ether, on the other hand, demonstrated relative price stability.
QCP Capital analysts also noted that over the past week, the ETH/BTC pair rose from 0.05 to 0.06.
“The next major events in the crypto sphere are the Bitcoin halving in mid-April and the potential approval of spot Ethereum ETFs in May,” the report states.
MN Trading founder Michaël van de Poppe is also optimistic about the future prospects of the second-largest cryptocurrency by market capitalization, expecting a “continuation of the trend.”
Strong bounce from #Ethereum resulting into a likely uptrend.
Needs to break through 0.06 BTC to make sure that the trend can continue, but the weekly bullish divergence identifies that there will be substantial strength in the coming months. pic.twitter.com/NPl3oJF9X4
— Michaël van de Poppe (@CryptoMichNL) January 17, 2024
Among the contenders for launching a new product is BlackRock. The world’s largest investment company filed an S-1 application with the SEC in November to register the iShares Ethereum Trust. Coinbase Custody Trust Company is listed as the custodian.
Last week, BlackRock CEO Larry Fink stated that he “sees value” in a spot ETF based on the second-largest cryptocurrency by market capitalization.
The supply volume of Ethereum with unrealized profit has risen to 91.8%, surpassing Bitcoin’s corresponding figure of 86.2%.
The continuation of this trend could lead to bearish pressure on ETH prices, as investors seek to capitalize on the difference between selling and purchase prices.
Previously, Morgan Creek Capital CEO Mark Yusko expressed skepticism regarding the prospects of spot Ethereum ETF approval.