Ether is outperforming bitcoin as ETF hype fuels the second-largest cryptocurrency
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- Ether has surged 27% so far this year, outperforming bitcoin, which has gained 20%.
- The second-largest cryptocurrency's gains are being fueled by hopes that it could be next to get ETF approval.
- Ether is currently trading at $2,899.97, after briefly breaching the $3,000 level on Tuesday.
The crypto ETF hype has found a new home: ether.
Ether has surged 27% so far this year, surpassing bitcoin's gains of 20%. The second-biggest cryptocurrency's gains are being partially fueled by hopes that ether could be next in line after the approval of the spot bitcoin ETF. It marks a reversal from 2023, when bitcoin led the pack.
Ether is currently trading at $2,282.32, after briefly breaching the $3,000 level on Tuesday. Meanwhile, bitcoin is trading at $50,921.01. Its market cap recently surpassed $1 trillion for the first time in over two years, as the approval of ETF boosted demand and as a halving event — which will reduce supply — approaches in April this year.
The spot bitcoin ETF, which tracks the real-time price of the token unlike previous ETFs which wagered future prices, was approved in January this year. Since the SEC approval, inflows into the 10 funds have notched $5.2 billion.
And the excitement has bled into ether. Even in the derivatives space, open interest in CME Group's ether futures marketplace is close to hitting a record high.
The total crypto market is now worth $2 trillion for the first time since April 2022.
Ether ETF applications have already been filed by the likes of VanEck and Ark 21Shares, and according to Standard Chartered, an approval could arrive in May, Bloomberg previously reported. Bernstein analysts have also placed a 50% odds that the ETF could be approved.