The Ethereum-Bitcoin ratio has dropped to a historic low, fueling speculation about the approval of an exchange-traded fund (ETF) in the U.S. Data from the Paris-based crypto intelligence platform Kaiko reveals that the ETH/BTC ratio has been on a steady decline since Ethereum transitioned into a proof-of-stake network in September 2022. In the last 24 hours, the ratio dropped to 0.048, its lowest point since May 2021.
The ETH/BTC ratio is a key indicator of Ethereum’s performance relative to Bitcoin. A rising ratio suggests that Ethereum is gaining strength or maintaining its value better than Bitcoin, indicating a market preference for ETH over BTC. On the other hand, a decrease in the ETH/BTC ratio suggests that Ethereum is underperforming compared to Bitcoin, which could signal investors’ preference for the perceived safety of Bitcoin. This ratio reflects not just price movements, but also shifts in investor confidence and market sentiment between these two leading cryptocurrencies.
Over the past year, Bitcoin’s price has significantly outperformed Ethereum’s. Bitcoin’s price rose by more than 170% to a 21-month high of over $47,000, while Ethereum posted a modest gain of 74%. The positive performance of Bitcoin could be attributed to market optimism and demand for the potential approval of a spot ETF. In recent months, several asset managers, including BlackRock, VanEck, and Grayscale, have been actively engaging with the U.S. Securities and Exchange Commission (SEC) over the applications, leading to speculation that these products could start trading as early as January 11.
Conversely, Ethereum’s lukewarm price performance coincided with the launch of several futures-based ETFs for the digital asset last year. These ETFs had little impact on the market due to tepid demand, leading asset manager CoinShares to label ETH as the “least loved altcoin” compared to rivals like Solana.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇫🇷 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Grayscale, U.S. Securities and Exchange Commission, BlackRock, VanEck, Kaiko |
| Currencies | Ethereum, Bitcoin, Solana |
| Securities | None |
