ETH price surges above $2,650, eclipsing investors’ expected impact of the spot Bitcoin ETF approval, but what’s behind Ethereum’s momentum?
Ether (ETH) price gained 13.5% between Jan. 10 and Jan. 12, breaking above $2,650 for the first time since May 2022. The pivotal factor for the rally has been the spot Bitcoin (BTC) exchange-traded fund approval, although the leading cryptocurrency traded down 2% in the same period. Investors now question if Ether has what it takes to sustain the current $322 billion market capitalization.
In the past 60 days, Ether price has gained 27%, outpacing Bitcoin’s 24% positive move in the same period – quite a feat considering that the spot BTC approval was expected to catapult its price as it opens room for a whole new set of clients who could not acquire cryptocurrency directly. Furthermore, Bloomberg ETF analysts hold 70% odds of an Ethereum ETF approval by May, as opposed to their 95% chances for Bitcoin.
BlackRock, Fidelity, Grayscale, VanEck, and other asset managers expect the final U.S. Securities and Exchange Commission (SEC) deadline on the spot Ethereum ETF decision by May 23, but given that Bitcoin already paved the way, some analysts believe the final answer might come sooner than anticipated. For instance, the SEC has intermediary deadlines in late January for some of the applicants.
