Mon, January 30, 2023

Ethereum Before It Takes a Big Jump

Ethereum coins concept art

The introduction this week of the ProShares Bitcoin Strategy exchange-traded fund (NYSE: BITO), the first full-fledged cryptocurrency ETF available in the United States, drove Bitcoin to a new all-time high above $66,000. Bitcoin’s price has increased by 40% in the last 30 days.

In comparison, the price of Ethereum, the second-largest cryptocurrency by market capitalization, has climbed merely 3% in the last week to $3,987.56. At the same time, Ether’s overall growth remains solid, with a year-to-date rise of 445 percent. The digital token cast in the shadow of the much larger Bitcoin, again in the spotlight in the investing world.

By all indications, the ProShares Bitcoin Strategy ETF has been a smashing success, amassing more than $1 billion in assets in the two days after it debuted on the New York Stock Exchange.

What about Ethereum ETF?

The introduction of the Bitcoin ETF located in the United States was received with tremendous demand, ranking as the second most heavily traded ETF debut on record. Data revealed $567 million US inflows on the first day of trade.

Because of this accomplishment, many on Wall Street and elsewhere are betting that an ETF centered on Ethereum futures may approve in the coming months. In the United States, there are now roughly five applications for Ethereum ETFs. Each Canadian ETF invests directly in Ether. Ether is the cryptocurrency used on the Ethereum network, now the world’s most active blockchain network. Canadian Bitcoin and Ethereum ETFs have proven to be extremely popular to date.

The Evolve ETF, which trades on the Toronto Stock Exchange under the ticker “ETC,” is the first multicurrency ETF. It combines the world’s two most valuable cryptocurrencies, measured by market capitalization, with around 67 percent Bitcoin and 33 percent Ethereum. Ethereum also hosts intelligent contracts, which allow users to execute safe and secure agreements without the assistance of a lawyer. This utility is why Ethereum’s price is currently hovering around $4,000.

One disadvantage of Ethereum is that it employs a “proof of work” mining algorithm requiring significant computing power. In essence, cryptocurrency miners use high-powered computers to solve puzzles and authenticate Ether transactions.

Ether Is Worth the Gamble

The cryptocurrency market is still in its early stages, making it speculative and volatile. That said, a few digital coins and tokens are emerging as legitimate investors worthy of capital.

Ether is the second-largest cryptocurrency for a reason, thanks to its multi-purpose function and future potential. While Bitcoin’s recent surge has eclipsed Ethereum’s, it won’t be long until Ethereum rallies to new highs. Some analysts predict that the cryptocurrency will reach a price of $10,000. 

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