Ether will likely continue to outperform bitcoin in the medium term as the market anticipates the possible approval of spot ETH -1.61% ETFs, QCP Capital said in its latest Market Update report.
In the week since the Securities and Exchange Commission approved multiple spot bitcoin ETFs in the U.S., ether has rallied over 5%, according to The Block’s Prices Page. The price of bitcoin, in contrast, has declined by over 6% over the same period.
“We expect ether to continue outperforming bitcoin over the medium term as the narrative rotates to potential ETH spot ETF approvals,” QCP Capital analysts said.
Wednesday’s Market Update from QCP Capital also highlighted that that the ETH/BTC exchange rate has risen from 0.05 to 0.06 in the past week. “The next major crypto events are the bitcoin halving in mid-April, and the potential for spot ether ETF approvals from May,” the QCP report added.
Larry Fink hints at spot ether ETF
The possibility of a spot ether ETF gained momentum following comments from BlackRock CEO Larry Fink last week, when he expressed that he “sees value” in having such a product in the U.S.
“I see value in having an Ethereum ETF. As I mentioned, these are just stepping stones towards tokenization,” Fink said during an interview with CNBC conducted after the initial trading day of the company’s new spot bitcoin ETF product.
BlackRock, the world’s largest asset manager, filed with the SEC for a spot ether ETF in November last year, five months after it filed for its spot bitcoin ETF product in June.
Ether supply in profit spikes above bitcoin
In the past week, the percentage of ether circulating supply in profit has increased whilst that for bitcoin has decreased. The percentage of circulating supply for ether is now at a multi-year high of 91.8%, whilst bitcoin percentage of supply in profit has fallen to 86.2%.
According to The Block’s Price Page, ether has fallen by 1.4% in the past 24 hours to change hands for $2,529 at 12:45 p.m. ET.
