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Ethereum Outshines Bitcoin in 2024
According to recent reports, Ethereum has experienced greater growth compared to Bitcoin this year. The surge in Ethereum’s value is attributed to speculations surrounding the potential approval of a spot Ethereum ETF.
Positive YTD Performance
Bloomberg reports that Ethereum has gained positive traction year-to-date, with increasing speculations about the next wave of exchange-traded funds. In a tweet, Bloomberg states, “The Ether token is outshining Bitcoin this year partly on speculation that the next wave of spot US crypto exchange-traded funds will focus on the second-largest digital asset.”
Market Performance
Ethereum has surged by 28% this year, outpacing Bitcoin, which has seen a 21% increase. This is a shift from previous trends, as Bitcoin had previously led in this metric. In the previous year, Bitcoin experienced a 158% growth due to institutional inflow, while Ethereum trailed behind with an 80% increase.
Currently, Ethereum is trading at $2,918, marking a 6% rise in the last seven days and an 18% growth compared to the previous month. The cryptocurrency briefly crossed the $3,000 mark on Feb 20 before undergoing a minor corrective phase during early trading hours.
Recent Highs and Lows
The climb in Ethereum’s value above $3,000 represents its highest point since April 2022, before the decline of the Terra Network and the subsequent FTX collapse. The bear market and falling asset prices in 2022 were attributed to industry events and broader macroeconomic factors, resulting in a more than 55% decrease in the values of Bitcoin and Ethereum.
Ethereum ETF Speculations
Analysts are predicting a potential shift for Ethereum, with expectations of a spot Ethereum ETF approval by the United States Securities and Exchange Commission (SEC). This follows the precedent set by the success of the Bitcoin ETF approval, which led to increased institutional interest and investment flows into the cryptocurrency.
Amidst speculations, several firms have filed applications with the SEC for an Ethereum ETF, while investors are eying Ethereum’s staking feature and the expanding smart contracts ecosystem as positive indicators for the cryptocurrency’s future performance.
Despite the positive outlook, there are mixed sentiments regarding the potential approval of an Ethereum ETF, with some anticipating legal hurdles and further regulatory scrutiny.
Overall, the market is observing a shift in attention towards Ethereum, driven by the anticipation of an ETF approval and the cryptocurrency’s unique features, which may position it for continued growth in the coming months.