How Will Spot ETH ETF Approval Effect Crypto Market & Blockchain Adoption
The increased chances of ETH ETF approval have disrupted the whole crypto industry overnight with ETH price skyrocketing to new highs within hours. The ETF analysts from Bloomberg – Eric Balchunas and James Seyffart – stated that the US Securities and Exchange Commission (SEC) is possibly asking ETH ETF applicants to amend their 19b-4 filings. This news led to rise in the approval chances from 25% to 75% which was oddly pessimistic until yesterday.
Speculations are being made regarding the ETH ETF likely to be approved by this weekend and it can have a significant impact on the crypto ecosystem with crypto assets directly benefiting from the pre-approval sentiment.
The potential approval of ETH ETF could directly fuel the market price of numerous crypto assets including ETH and bring rich dividends for investors and traders. It will also be beneficial for tokens, dApps, and protocols deployed on Ethereum and its infrastructure.
Let us have a look at each crypto asset and how the approval could impact them.
ETH
The news of approval has pumped ETH price more than 20% in the past 24 hours. This gives us a visualization of the impact the actual approval could bring to the ETH price. At the time of this report getting published,. ETH is currently trading at $3,770 which is up 22% in the past 24 hours – according to data from Coinmarketcap.
Now as we move towards the deadline, we might see ETH prices rising even faster and potentially break to a new all-time high. Although the price of ETH was suppressed for a while, even as other crypto assets were witnessing sharp spikes amid the ongoing bull run. Now this milestone has brought an astonishing opportunity for ETH to reclaim all gains and justify its position of being the second largest crypto asset.
BTC
While BTC already had its run during the spot BTC ETF anticipation days, it has also risen more than 7% in the past day after ETH ETF news reached the public. While these gains could not be considered as large as that of ETH, it has helped BTC price reach an all time high above $70,000.
BTC is currently trading at $71,200, up nearly 7% in the past 24 hours. BTC was the first crypto asset to have the spot ETF, which was approved in early January. As the ETH ETF accelerated the market, the inflow in spot BTC ETF also came positive.
PEPE
PEPE is one of the most popular memecoins in the crypto ecosystem which is deployed on Ethereum. Among the meme coins, PEPE holds a special place for being an Ethereum-based meme coin and its impact was visible as it recently recorded an all-time high. It seems that the sole reason behind PEPE price pumping is the ongoing memecoin primitive where leading memecoins are fighting to become a market leaders.
How Spot ETH ETF Impacts Blockchain Adoption
As blockchain adoption is in its growing phase, the approval of spot ETH ETF could bring massive attention to Ethereum and enhance its credibility. It could introduce the concept of smart contracts to traditional finance players who will get direct exposure to ETH via ETFs. The spot ETH ETF approval also puts Ethereum forward as a standard infrastructure where a variety of applications could be launched.
While the ETF is mostly subjective to the finance side, Ethereum also holds significance on a wide technical perspective. Several market leaders are already experimenting with applications like asset tokenization on Ethereum that could be boosted with the availability of spot ETH ETF. Such initiatives are already explored by leading market players including BlackRock which has allocated over $100 million for asset tokenization on Ethereum.
Can ETH outpass BTC in the future?
The question ‘Could ETH surpass BTC’ remains age-old in the crypto industry. As a market leader, Bitcoin (BTC) has positioned itself as a supreme crypto asset while Ether (ETH) is in the second number. For a hypothetical scenario, the increasing adoption of Ethereum gives the possibility that it could surpass Bitcoin in the long term. However, the current market cap of Bitcoin stands at $1.4 trillion, which is more than 3X than that of ETH. It would take ETH price to gain triple the size from the current phase to position itself near Bitcoin.