Ethereum is outperforming Bitcoin due to market expectations of possible spot ETF approvals for ETH.
According to the latest market update report from QCP Capital, Ethereum (ETH) is showing signs of outperforming Bitcoin (BTC) in the medium term. This shift in market dynamics is related to the anticipation of possible approvals for ETH spot ETFs.
6/ The next big crypto events are the BTC halving (mid-April) and possible ETH spot ETF approvals from May. Meanwhile, crypto could take a direction from macroeconomic events.
— QCP Capital (@QCPCapital) January 17, 2024
Recently, the US Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs, following which the value of Ether rose by over 5%. In contrast, Bitcoin price recorded a decline of more than 6% over the same period.
Analysts at QCP Capital believe Ethereum’s bullish trend is likely to continue, especially as the narrative shifts towards the likelihood of an ETH spot ETF approval. Additionally, the report highlights a notable increase in the ETH/BTC exchange rate, which rose from 0.05 to 0.06 in a week.
Upcoming significant events in the crypto space, such as the Bitcoin halving in mid-April and possible Ethereum ETF spot approvals starting in May, are also expected to impact market trends.
The potential for a spot Ether ETF gained further momentum after BlackRock CEO Larry Fink acknowledged the value of such a product in the United States. BlackRock, the world's largest asset manager, had already filed with the SEC for a spot ETF for Ethereum in November after filing for a spot ETF for Bitcoin in June.
The circulating Ether supply's share of profits also increased last week, reaching a multi-year high of 91.8%. Bitcoin has fallen to 86.2%, indicating growing investor confidence in Ethereum compared to Bitcoin.
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