While all eyes are on the bitcoin spot ETF, Invesco and Galaxy Digital have amended their application for an ethereum spot ETF.
The ETFs were first introduced in September, joining ARK Invest, VanEck, Grayscale and Hashdex, but were modified following the approval of Ethereum futures ETFs.
The decision earlier this month by the Security and Exchange Commission (SEC) to allow trading of ethereum futures ETFs means that an eth spot ETF is guaranteed if a bitcoin spot ETF is approved.
Therefore, the SEC’s decision to allow eth futures ETFs puts ethereum on par with bitcoin, the only two cryptocurrencies to have debuted on Wall Street.
However, while bitcoin is up 8.6% this month, ethereum is down 2.7% despite being officially declared not a security and despite its futures ETFs launching on Wall Street.
The main reason is probably because Bitcoin is getting all the attention and attention as there is almost no speculation about an Ethereum spot ETF.
However, Grayscale filed to convert the ethereum trust, ETHE, as well as the bitcoin trust, and they would likely sue the SEC if it rejected ETHE, just like they sued bitcoin.
Therefore, there is no foreseeable development where a Bitcoin spot ETF is approved but an Ethereum ETF is not.
Therefore, this short-term trade could very well see these ethereum return to eth in an endless ping pong between the two cryptocurrencies with this upward cycle started by eth, now carried forward by bitcoin and then to see if eth holds it active for longer.
But there is a difference. BlackRock, the biggest new entrant to the cryptocurrency market since 2020-21, has not filed for a spot ETF.
This hype has as much to do with the ETF as it does the fact that it is from BlackRock. This big name in investment management lends legitimacy to Bitcoin in both finance and public investment in general.
Because competition will initially be intense, some expect BlackRock to announce the bitcoin ETF and therefore bitcoin itself.
Bitcoin has a January deadline for approval or rejection, and everyone thinks it will be an approval considering the legal environment.
Ethereum applications, on the other hand, are newer, so those deadlines come up to a few months later. Since the foundation had already been laid, enthusiasm would not exist to the same extent.
However, the SEC can always approve it before the deadline. Considering the legal situation, they may surprise and approve of Bitcoin and Ethereum ETFs because there is practically no difference between the two.
This surprise, if it occurs, could very well impact the price of Ethereum, where a spot ETF has not been listed, as demonstrated by the jump of approval fake news in Bitcoin.
Additionally, a big question may also be to what extent hype matters compared to fundamentals (in this case, the opening of a new market).
Sure, bitcoin is getting all the attention, but if an eth spot ETF appears, investment portfolios will be able to access it in the form of shares, while it can be exchanged for eth, generating new demand.
All of this might suggest that ethics is a bit underrated, especially since some ethics traders have jumped on the bitcoin bandwagon even though they both got the ETF, or neither.
Therefore, these short-term movements should not be a concern for medium and long-term investors, because everything should cancel out with the fundamentals that ultimately define the price, and the key here is that the two largest cryptocurrencies have access to the largest market. in the world.
Bitcoin and eth will also be the only two cryptocurrencies to enter the institutional investor stage, either at the same time or a little later.
And as such, there was no difference in relative value when it came to this aspect, except that bitcoin has BlackRock as an extra, but VanEck is also a well-known and trusted investment manager.