According to Bloomberg, the price of Ether relative to Bitcoin has increased to around 0.05 from 0.045 following the initial approval stage for Ether ETFs by the US Securities and Exchange Commission (SEC). The Ether to Bitcoin ratio indicates how much Bitcoin is needed to purchase a single Ether token, with a higher ratio being favorable for Ether as it signifies a higher value relative to Bitcoin.
Since the SEC's preliminary approval on May 23, the price of Ether has decreased by approximately 10% to $3,380. However, Kaiko suggests that this decline does not fully capture the positive implications of the increased ratio for Ether's performance once the ETFs begin trading. Final approval from the SEC is anticipated around mid-July, according to Steve Kurz, head of asset management at Galaxy Digital. Following the launch of Bitcoin ETFs, the price of Bitcoin has surged by about 50% this year to $63,400, while Ether has risen by 48%.
OâNeill noted that the potential approval of the ETFs has not been entirely factored into the market, with some investors remaining cautious until the ETFs start trading. He believes this leaves room for Ether's price to increase further. Currently, Ether holds a market value of approximately $400 billion, making it the second-largest cryptocurrency after Bitcoin, which has a market value of around $1.2 trillion.