ETH rose to around $2,100 after Blockrock filed for a spot Ethereum ETF last night.
While ETH has shown a superior performance compared to Bitcoin with this rise, investors are wondering whether ETH’s rise will continue.
At this point, analysts have noted that the ETF narrative could have a larger market impact on Ethereum than on Bitcoin.
Additionally, analysts said options data, a key market indicator, shows that ETH’s outperformance is more than a one-time event and could continue in the near term.
At this point, analysts think traders will price in higher volatility in Ethereum compared to Bitcoin in the coming weeks.
According to analysts, this positive reversal of ETH shows that investors are expecting further bullish movements in Ethereum in the next three-four weeks.
At this point, the possibility of a spot Bitcoin ETF being approved in the USA has been priced in, but now the focus is on Ethereum.
Speaking to Coindesk, Jeff Anderson, a senior analyst at STS Digital, said:
“BTC was followed in the market last month. However, it seems that spot Bitcoin ETF approval is now very close to being priced. In other words, spot Bitcoin ETF approval is very close.
ETH lagged Bitcoin in October, but BlackRock’s ETH ETF application yesterday reminded everyone that a similar product for ETH is not far behind.
The BTC to ETH shift has begun and people seem to be chasing Ethereum which is now showing signs of life.”
Blofin analyst Griffin Ardnern said, “ETH has a relatively small market cap compared to BTC. This means that when the same amount of liquidity flows into ETH as Bitcoin, the ETH price will rise even higher and volatility will be greater.” said.
ETH is at $2,095 at the time of writing.
*This is not investment advice.
