Institutional crypto market data provider Kaiko has released a report projecting that Ethereum (ETH) will outperform Bitcoin (BTC) following the launch of spot Ether ETFs in the United States. The anticipation surrounding these new financial products has led to bullish market projections, with expectations of new highs fueled by institutional inflows observed even before the official launch.
Ethereum Growth to Surpass Bitcoin
Kaiko's recent report suggests that the introduction of Ethereum ETFs could position the asset to surpass Bitcoin. The firm highlighted the Ether-Bitcoin price ratio, noting that it has risen to 0.05 from 0.045 following the SEC's approval of 19b-4 for several issues. This ratio indicates Ethereum's increasing value relative to Bitcoin.
"The ETH to BTC ratio, which measures the relative performance of the two assets, remains elevated around 0.05. This is significantly higher than pre-approval levels of nearly 0.045. A stronger ratio suggests ETH could continue to outperform BTC following ETF launches," the report stated.
In the past two months, Ethereum's price experienced a 20% decline amidst the initial frenzy over SEC approval. Despite this, spot Ethereum ETFs are expected to attract substantial institutional investments, driven by Ethereum's smart contract functionality and its extensive ecosystem of decentralized applications (DApps). Wealth managers have identified Ethereum as having significant growth potential.
ETH Price Hits $3,500 Ahead of Spot ETF Debut
Spot crypto ETFs have become a major focus in the market this year, with billions in investments flowing in. The approval of spot Bitcoin ETFs on January 11 sparked renewed market optimism, paving the way for institutional investments. This success has shifted investor attention to Ethereum, causing crypto prices to surge to new highs. The upcoming trading of ETH products this summer, along with related optimism, has also led to filings for Solana ETFs.
Over the past 24 hours, the price of ETH has increased by over 2%, currently trading at $3,415. The 24-hour trading range was between $3,330 and $3,498. Additionally, trading volume has surged by 50% in the last 24 hours, indicating growing interest among traders.
Conclusion
The projection by Kaiko highlights the potential for Ethereum to outperform Bitcoin following the launch of spot Ether ETFs. With institutional investors showing increased interest in Ethereum's robust ecosystem, the cryptocurrency could see significant growth and continue its upward trajectory in the market.
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