Ether is likely to outperform bitcoin in the medium term, QCP says

Quick Take

  • Anticipation over the potential approval of spot ether ETFs will likely result in ETH continuing to outperform BTC, according to Wednesday’s QCP Market Report. 

Ether will likely continue to outperform bitcoin in the medium term as the market anticipates the possible approval of spot ETH 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. 


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© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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