Ethereum and altcoins rise after SEC approval, overshadowing Bitcoin’s modest gains. The introduction of BlackRock’s Ethereum ETF signals a shift toward widespread acceptance of cryptocurrencies.
Market reaction to the recent SEC approval has been overwhelmingly positive, with significant gains in Ethereum and several altcoins. Since the SEC approval, Bitcoin has seen a modest rise of $500. In contrast, altcoins like ETC, Arbitrum, and Mantle are up 30%, 20%, and 20% respectively. Trading and inflows for Bitcoin ETFs will begin today, so these funds have not yet affected Bitcoin ETFs.
Ethereum (ETH) has notably gained attention following BlackRock’s decision to file for an ETH ETF, eclipsing Bitcoin (BTC). Below are more details on the development and factors influencing Ethereum upgrades.
Ethereum ETF: Diverse Global Market with Key Players.
The growing interest in Ethereum ETFs in the US reflects a growing global market trend for Ethereum-based financial products. For example, Switzerland’s 21Shares manages 148,000 ETH, demonstrating the diversity of this market. Grayscale’s Ethereum (ETHE) trust fund, with over 3.1 million ETHE, is a major market leader.
Revitalization of Ethereum Investments by Funds
Since mid-October, investment funds, especially German ones, have actively increased their holdings in Ethereum (ETH). This increase in ETH investments coincides with the period following BlackRock’s ETF filing. The recent influx of investments has almost completely offset previous outflows, indicating a resurgence of investor confidence in Ethereum.
Potential Impact of Major Asset Managers’ Investment in Ethereum
If major asset managers like BlackRock invest 1% of their $44.48 trillion in Ethereum holdings, it could increase Ethereum’s market capitalization almost threefold, potentially raising the price of ETH to around $6,200. This highlights how large-scale investments, especially given the reduction in Ethereum supply, could significantly impact its market.
BlackRock and Wall Street Waiting for an Ethereum ETF?
According to a Medium report, the interest in Ethereum ETFs is about more than just diversifying asset classes; it’s about introducing cryptocurrencies into the mainstream. BlackRock’s recent filing for an Ethereum spot ETF suggests that such an ETF could be just around the corner. This move signals a significant shift in traditional finance’s approach towards cryptocurrencies, with an increasing focus on Ethereum. The approval of this ETF by the SEC would be a milestone in the acceptance of digital assets by the financial world, providing a regulated way to access Ethereum.
Ethereum’s Prospective Growth: An Outlook for 2024
In late 2023, despite Ethereum’s stagnation, a significant investment in the ETHE fund indicated continued investor interest. Ethereum, overshadowed by Bitcoin, appears poised for a big rally. ETH price is currently $2,584.91 up 8.94% in 24 hours and 15.99% over the past week.
If Ethereum outperforms Bitcoin in 2024, it will likely be due to strategic institutional investments and the progressive decrease in Ethereum supply, which will influence market dynamics.
According to CryptoPredictions, Ethereum started in January 2024 at $2,279,941 and is predicted to end the month at $2,499,909. During January, the maximum forecasted ETH price is $2,564.737 and the minimum price is $1,744.021.
Meanwhile, the ETH Price is forecast for today (11.01.2024) to be in the $1,969.580 – $2,896.441 price range. Ethereum is predicted to end today at $2,317.153.
By Audy Castaneda
