Ethereum Rises While Bitcoin Declines: What’s Driving ETH’s Rally?

The cryptocurrency market has experienced significant changes following the approval of Bitcoin Spot ETFs. Data from Binance shows that Bitcoin began to decline following approval, falling as low as $43,814 in the last hour, marking a 4.4% decline in 24 hours.

Rally in Ethereum May Be Due to ETH Spot ETF Expectation

In comparison, Ethereum is up 3.2% in 24 hours and nearly 20% in the last seven days. This increase may be linked to the expectation of Ethereum Spot ETFs.

Even as major cryptocurrencies, including Bitcoin, have recorded sharp pullbacks, ETH has gained almost 2% in the last 24 hours.

Ethereum had surged above $2,600 after the U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs on Wednesday. However, data shows that the circulating ETH supply in profit is currently at 89.4%, a high level not seen since 2021.

The SEC’s recent approval of a spot Bitcoin ETF has led to speculation that a spot Ether ETF may also be on the horizon. ETC Group Research Manager André Dragosch suggests that such a possibility would be bullish for ETH.

Dragosch also noted that the recent high supply of ETH in circulation could be seen as a stabilizing factor for the token.

*This is not investment advice.

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