Ether ETFs Could Boost Cryptocurrency Performance Beyond Bitcoin

The upcoming launch of spot Ether exchange-traded funds (ETFs) could boost Ether’s performance relative to Bitcoin, according to research firm Kaiko. The Ether to Bitcoin ratio has increased from 0.045 to 0.05 following the initial approval from the US Securities and Exchange Commission (SEC), indicating a stronger value for Ether. Although Ether’s price has declined by about 10% to $3,380 since the SEC’s move on May 23, the improved ratio suggests positive future performance once the ETFs start trading. Final SEC approval is anticipated by mid-July. Bitcoin has risen 50% this year to $63,400, while Ether has increased by 48%. The introduction of an Ether ETF would allow institutional investors to diversify their crypto holdings beyond Bitcoin. The market hasn’t fully priced in the potential ETF approval, leaving room for Ether’s price to grow. Currently, Ether is the second-largest cryptocurrency with a market value of approximately $400 billion, behind Bitcoin’s $1.2 trillion.