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ethereum is outperforming bitcoin, driven by market anticipation of potential eth spot ETF approvals.
ethereum (eth) shows signs of outperforming bitcoin (btc) in the medium term, according to the latest market update from QCP Capital. report. This change in market dynamics is linked to the anticipation of potential eth spot ETF approvals.
Recently, the US Securities and Exchange Commission (SEC) approved multiple bitcoin spot ETFs, following which the value of Ether saw an increase of more than 5%. In contrast, the price of bitcoin saw a drop of more than 6% during the same period.
Analysts at QCP Capital project that ethereum's upward trajectory is likely to persist, especially with the narrative shifting toward the likelihood of eth spot ETF approvals. Furthermore, the report highlights a notable increase in the eth/btc exchange rate, going from 0.05 to 0.06 in one week.
Upcoming major events in the crypto space, such as the bitcoin halving in mid-April and potential ethereum ETF spot approvals starting in May, are also expected to impact market trends.
The potential for an Ether spot ETF gained further momentum following statements from BlackRock CEO Larry Fink, who recognized the value of such a product in the United States. BlackRock, the world's largest asset manager, had previously filed with the SEC for an ethereum spot ETF in November, following its application for a bitcoin spot ETF in June.
Ether's circulating supply profit percentage also increased over the past week, hitting a multi-year high of 91.8%. bitcoin has declined to 86.2%, indicating growing investor confidence in ethereum compared to bitcoin.
