Ethereum and Altcoins Are the Biggest Winners of Bitcoin ETF Approval

Bitcoin briefly reached $47,000 in a subdued ascent following the approval by the U.S. Securities and Exchange Commission of Bitcoin ETFs directly investing in the token. Traders are now monitoring the products to assess their financial impact. While Bitcoin gains stay limited, Ethereum (ETH) and other altcoins have registered maximum gains after the ETF approval.

Ethereum Investors Cheer the ETF approval

Soon after the news of Bitcoin ETF approval, the Ethereum (ETH) price surged by a staggering shooting past $2,600 levels. Several market analysts have already predicted that ETH is likely to outperform BTC in Q1 2024.

As Ether experienced a notable surge, its positive momentum extended to other cryptocurrencies within the Ethereum ecosystem. Tokens affiliated with Polygon observed a 13% increase, Chainlink saw an 11% advance, and Uniswap registered an impressive 14% surge.

The speculation around a Bitcoin ETF becoming a reality has prompted a shift in trader focus towards Ether, anticipating the next narrative of an Ethereum ETF. Conor Ryder, Head of Research at stablecoin company Ethena Labs, notes that with Ether appearing relatively inexpensive compared to most other tokens, traders are strategically positioning themselves in anticipation of developments in the Ethereum space.

Looking ahead, the Securities and Exchange Commission (SEC) is slated to make decisions on spot Ethereum ETF applications starting in May. Major players such as BlackRock, Invesco, Ark, VanEck, and Grayscale, seeking to convert its existing Ethereum Trust (ETHE) into an ETF, are among the firms awaiting approval. Speaking to CNBC, Ryder added:

“It’s all about getting ahead of the narratives — bitcoin has rallied versus ether for the last six months thanks to spot ETF speculation, and ETF approval ties a bow on that narrative. Meanwhile ETH has struggled to find any momentum and has underperformed compared to most of the smaller Layer 1s,” or blockchain networks, like Solana and Cardano”.

Over the last 24 hours, ETH has experienced a surge of over 10%, contrasting with a general decline in Ethereum NFTs. Notably, Moonbirds has witnessed a drop exceeding 23%, marking its first instance below 1 ETH in history. Additionally, MAYC has seen a decrease of more than 6%, with approximately 290 MAYC currently in Blend liquidation auction status.

Altcoins Join the Party

Apart from Ethereum, other altcoins like Cardano have also joined the party. The Cardano (ADA) price is up 12.48% and is currently trading at $0.58 with a market cap of $20.5 billion. As per the breakout on the technical chart, the ADA price can rally all the way to $1 this year.

At the same time, the Avalanche (AVAX) and Polkadot (DOT) prices are also up by 11.47% and 14.6% respectively.