- Ethereum outperforms Bitcoin post-fake BTC ETF approval.
- Market speculation grows on pending Ethereum spot ETF applications.
- SEC’s approval of spot Bitcoin ETFs sets the stage for potential Ethereum ETF green light.
In the aftermath of a deceptive announcement regarding the approval of spot-based Bitcoin exchange-traded funds (ETFs), prominent analytics firm IntoTheBlock observes a significant shift in the crypto markets. According to IntoTheBlock’s latest analysis, Ethereum (ETH) has outpaced Bitcoin in recent days, leading many traders to speculate that Ethereum could be the next cryptocurrency to secure a spot market ETF.
The incident occurred on Tuesday when an unauthorized user compromised the U.S. Securities and Exchange Commission’s (SEC) X account, falsely proclaiming the approval of a spot market Bitcoin ETF. IntoTheBlock’s head of research, Lucas Outumuro, notes that Ethereum’s remarkable surge, exceeding 10% since the faux BTC ETF approval, suggests heightened anticipation for the approval of Ethereum spot ETF applications.
Outumuro points to pending applications from BlackRock and other entities for Ethereum spot ETFs, indicating a strong market belief in their potential approval. He states, “Ether has outperformed Bitcoin by over 10% since the initial fake approval of the spot ETF came out on Tuesday. With BlackRock and several other entities having pending applications for Ethereum spot ETF applications, the market appears to be giving it high odds they will pass.”
The recent approval of spot Bitcoin ETFs has set a precedent, paving the way for the SEC to potentially green-light a spot Ethereum ETF. Outumuro highlights the SEC’s approval order, stating, “Fraud or manipulation that impacts prices in spot Bitcoin markets would likely similarly impact CME Bitcoin futures prices.” Drawing parallels between Bitcoin and Ethereum, he suggests that the SEC may adopt a similar logic for approving an Ethereum ETF.
Notably, Ethereum’s ecosystem is witnessing increased support from traders who are accumulating assets related to ETH. Outumuro notes, “Additionally, the market has also favored higher beta ETH-related investments, with layer-2 tokens and liquid staking protocols recording gains of over 10% this week, and with extra catalysts fueling these higher.”
Concluding his analysis, Outumuro highlights that market speculators have redirected their focus to Ethereum, foreseeing the potential approval of ETH ETFs as the next major catalyst for the second-largest cryptocurrency. As of the latest update, Ethereum’s value stands at $2,564, marking a 13% increase since the beginning of the year.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.