With the approval of the Bitcoin spot ETF, the market may be expecting the Ethereum spot ETF to also pass. Earlier, ETH broke through $2,600, reaching a new high since May 2022. The performance of Layer2 concept coins is also impressive, with ARB increasing by over 20% in a single day.
Short-Term Outperformance of Ethereum over Bitcoin
Strong Performance of Layer2 Tokens
Market Optimistic about Approval of Ethereum Spot ETF
In a significant milestone for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has officially approved 11 Bitcoin spot ETFs, including Grayscale, 21Shares & ARK, and BlackRock. Interestingly, Bitcoin did not experience significant gains (or even declined) at the time of approval. It briefly surged to $47,695 later, but selling pressure quickly emerged, and as of the deadline, it was reported at $46,539, with a 1.3% increase in the past 24 hours.
In contrast, Ethereum significantly surged. The Ethereum spot reached as high as $2,643 earlier this morning, reaching a new high since May 2022. As of the deadline, it was reported at $2,580, with a 9.6% increase in the past 24 hours.
With Ethereum leading the charge, the performance of Layer2 concept coins is even more impressive:
– OP is currently at $3.93, with a 9.1% increase in the past 24 hours.
– IMX is currently at $2.16, with an 11.7% increase in the past 24 hours.
– ARB is currently at $2.32, with a 22.1% increase in the past 24 hours.
– MNT is currently at $0.7745, with a 16.7% increase in the past 24 hours.
– METIS is currently at $95.14, with a 12.5% increase in the past 24 hours.
According to cryptocurrency market analysts, after the approval of the Bitcoin spot ETF, it is likely that the Ethereum spot ETF will also be impossible to reject, attracting investors to take early positions. Michaël van de Poppe, CEO and Founder of MN Trading, also pointed out that Bitcoin and its ETF are currently gaining momentum, but the arrival of the Ethereum spot ETF is also possible, making it reasonable to allocate a significant amount of funds to the Ethereum ecosystem.
According to previous reports from Doo Wan, seven institutions including BlackRock submitted applications to the SEC for Ethereum spot ETFs last year. Currently, the final approval decision deadline for the VanEck, ARK 21Shares, and Hashdex Ethereum spot ETFs is May 2024, with other applications expected to be reviewed in the coming months.
James Seyffart, an ETF analyst at Bloomberg, previously stated that when the SEC approved the Ethereum futures ETF last year, it implicitly accepted Ethereum as a commodity without questioning its classification. This suggests that an Ethereum spot ETF is expected to be listed this year.
Related Reports:
– It’s Ethereum’s Turn! Spot ETF Expected to be Approved for Listing This Year! Bloomberg Analyst: SEC Has Implicitly Recognized ETH as a Commodity.
– Ethereum Surges: Blast TVL Exceeds $1.1 Billion, Whales Add Another 13,400 ETH.
– Solana Can Be an Ethereum Layer2! Founder Claims: Can Be EVM-Compatible After Sharding Upgrade.