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Despite the profound roots of Bitcoin, given its recognition as the first and best cryptocurrency to date, Ethereum has quickly gained ground after its creation and succeeded in taking the world aback with its impressive performances. Today, the battle is held between Bitcoin and Ethereum, the two cryptocurrencies often interchangeably but mistakenly used for the term “cryptocurrency”.
Both Bitcoin and Ethereum secured their first, respectively, second place at the top along the road, and the chances are that it will go this way in the foreseeable future. Bitcoin is trading for well above $35,000 at the moment of writing, whereas Ethereum’s selling price fluctuates above and below $2,000.
Bitcoin was valued at nearly nothing when it launched in October 2009. After a large pizza was both for what would today be worth thousands of dollars, the industry’s leader made waves and saw more and more enthusiasts learn how to buy Bitcoin p2p or accumulate the asset through other payment means.
Ethereum, consequently, was developed by a former Bitcoin-team employee, who noticed the gaps in the technology as well as its potential, took his expertise to the next level and founded Ethereum. The ongoing progress and the accumulation of knowledge, layered upon existing information, explain why BTC and ETH consistently grab headlines in today’s newspapers.
Similarly, developments and innovation don’t stop here, with institutional investors such as mutual and hedge funds showing increasing interest in exploring the sector, especially as it is gaining more prominence than ever, outpacing any other asset category’s growth.
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Anticipation is high for the upcoming recurring event of Bitcoin
Halving events, marking the reduction in two of the rewards received by Bitcoin miners for a block, have occurred regularly for years since its creation, as Satoshi Nakamoto intended. The main reason behind this strategic move is to control the asset’s supply, which is capped at 21 million, and make it inflation-proof.
Historically, these events have brought positive value movements for the asset. For instance, the first halving in 2012 occurred when the price was around $12, and it soon skyrocketed to $130 in the following six months. The 980% in such a short period was not the first time Bitcoin was bound to see an astronomical surge months after halving events. The second halving marked an ascendence of around 36%, whereas the following saw the price reach an ATH, tripling and earning more than $28,000 by the end of the second decade.
In anticipation of the following halving scheduled for April 2024, investors believe in the slight but realistic chance of seeing the price rise impressively. When the number of blocks reaches 740,000, and the reward drops from 6.25 to 3.125, a new era for BTC will usher in as the better part of the crypto community aspires.
The potential surges will consequently drive Ethereum and the whole cohort up, as history indicates that an improvement of the entire crypto market naturally follows a growth in Bitcoin’s price.
The potential approval of the first Bitcoin ETF sparks interest in the sector, encouraging prices to grow
The first US bitcoin (BTC) exchange-traded fund (ETF) has generated a lot of buzz in the crypto community and ignited curiosity beyond this specific audience’s borders. To start with, a BTC ETF works like an accumulation of funds from various investors willing to combine their money to buy BTC futures contracts.
The development of this fund means that investors will gain more exposure to the asset, which reflects the reasoning behind the first Ethereum ETF, too. Through Bitcoin ETFs, investors will have invested in and owned the asset without literally managing or taking responsibility for it.
Recent research from CoinShares showed that the approval of the first spot BTC ETF might potentially draw $14,4 worth of investments in the first year, which would catapult the asset to $141,000 by the second part of the decade.
The speculations remain unsubstantiated, considering the significant distance that still needs to be covered by that time. But as BlackRock inches closer to the approval of the first ETF, the accelerator for similar inflows seems nearer than ever.
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Ethereum is no stranger to this type of excitement
Ethereum has also experienced this type of endorsement and enthusiasm from the crypto community and beyond when it was associated with the first ETF of its kind. BlackRock, one of the largest asset management companies worldwide, has made steps towards bringing this type of fund to life, which further fueled optimism for the asset, which was mirrored in its favorable price performance.
The multinational company publicly filed for a spot Ether ETF with the SEC on the 16th of November. A week ago, the investment manager officially archived the iShares ETH Trust with Delaware’s Division of Corporations. This move came six months after the submission of its filing for a spot Bitcoin ETF.
The development in question was registered earlier this month, and should it be accepted, it will be listed on the Nasdaq platform. It will offer interested investors the possibility of gaining exposure to the second-largest crypto asset without the pressure of directly owning or monitoring it. Essentially, they may enjoy the rewards without concern with the management process.
The adherents to Ethereum ETFs aren’t limited to this firm. Another company, Fidelity, ranks seventh among those that, together with BlackRock, applied for a spot in Bitcoin and Ethereum ETF. The list includes Invesco Galaxy, Hashdex, VanEck, and ARK Invest.
In summary, Ethereum experiences its fair share of optimism and excitement fueled by anticipations of a first spot in the ETH ETF.
Related: Ethereum Alternatives
What crypto is in store for a better upside by the beginning of the following year? Well, no one can genuinely or accurately tell. History suggests that Bitcoin will keep registering better growth performances in terms of percentage.
Still, it’s undeniable that the ways and routes it will take will be interesting to watch. Ethereum is in a sweet spot, too, so if the second cryptocurrency has piqued more of your interest, your bet should also be safe on it.
With caution and common sense, the hazy waters of the crypto realm can be navigated successfully.