The entire cryptocurrency community has eagerly anticipated the approval of spot Bitcoin ETFs. However, it’s important to keep in mind that several institutions have submitted applications for Ethereum ETFs as well. The likelihood of approval for these Ethereum-based funds is greater because they are based on futures contracts. A recent article from Bloomberg, citing undisclosed sources with knowledge of the matter, reported that the regulatory agency is poised to give the green light to applications from approximately twelve companies, including ProShares, Volatility Shares, Bitwise, and Roundhill.
Furthermore, a recent report by K33 also emphasized the favorable prospects for SEC approval of Ethereum ETFs. Senior Analyst Vetle Lunde suggested that this development could potentially have a positive impact on the price of Ethereum. Lunde’s view is that ETH presents a compelling investment opportunity relative to Bitcoin. The analyst stated:
“The odds are strongly in favor of Ethereum. The ETH/BTC trading pair is currently near its lowest point in a 2.5-year range, leaving significant room for potential relative upside.”
Ethereum’s Recent Performance: Is It Outpacing Bitcoin?
The current trading level of ETH/BTC at 0.0632 is reminiscent of a similar point observed in the latter half of 2021. Following a series of fluctuations, Ethereum experienced a substantial 74% rally against Bitcoin from its local lows. At present, the ETH/BTC pair has been making attempts to break free from a descending wedge pattern over the past few weeks. When the price approaches the converging trendlines, it typically signifies the impending conclusion of the downward movement. This is due to the fact that the decreasing lows and lower highs suggest a diminishing bearish momentum and a gradual resurgence of bullish activity. Therefore, a successful breakout above the upper trendline is anticipated to decelerate the rate of decline and potentially trigger a new bullish trend in the ETH market.
Nonetheless, it’s worth noting that Ethereum’s Implied Volatility has been consistently low recently. This metric assesses the market’s anticipation of future price movements based on options. The existing lack of volatility indicates a lack of consensus among traders at the moment, with expectations leaning towards the asset’s price remaining relatively stable.