Bitcoin {{BTC}} has risen 2.8% over 24 hours, trading above $66,500, and ether {{ETH}} has advanced to $3,240, according to CoinDesk Indices data, as multiple issuers in Hong Kong said they'd been approved for spot crypto exchange-traded funds (ETFs).

China Asset Management, Bosera Capital and other applicants posted to social-media platform WeChat (Weixin) that they had been approved to list spot bitcoin and ether ETFs in Hong Kong. However, these announcements seem to have front-run an official statement from the Securities and Futures Commission (SFC), which has not posted a list of approved issuers. Some of the posts have since been deleted.

The SFC did not return emails or phone calls asking for comment.

Singapore-based digital assets trading house QCP Capital said in a message shared with CoinDesk that it believes the ETFs, when approved, will unlock some institutional demand during Asia trading hours.

"Participants who wanted exposure have always been limited to US hours, but this now gives institutional investors an Asia-based alternative," QCP wrote. "We believe this will be bullish short term, but there are more important narratives and drivers such as macro events."

The post Bitwise CIO Advises to Begin Accumulating XRP as Preparations for XRP ETF Kick Off: ‘We’re working on them’ appeared first on Coinpedia Fintech News

XRP’s price has been giving mixed signals lately but there is some interesting news on the horizon. Grayscale is set to launch an XRP Trust, which will give accredited investors direct access to XRP. This trust could lead to an XRP ETF in the future, attracting more traditional investors.

Matt Hougan CIO at Bitwise appeared on the Thinking Crypto podcast recently. While discussing Solana ETFs, when he was asked about other potential assets like Avalanche, XRP, or Cardano, he said that they are evaluating a range of assets but didn’t specify if they are in the top ten.

“We’re looking at a wide array of assets. We’ve entered the ETF era of crypto. It’s much harder to go from zero to one than it is to go from one to 100 in anything. But also in ETFs, it’s going to take regulatory changes, maybe changes in the direction of how the SEC thinks about this market,” he said.

Matt continued, “But there are a number of robust assets that deserve ETFs, in my view. In Europe, you see these ETFs helping investors get safe, low-cost exposure to these assets. I think we’re going to get there in the US. So, yeah, stack up the pillows behind your right shoulder. We’re working on them.”

A Look At The Current State of Solana ETFs

He then said they are contemplating entering the market to get a head start. They might file for ETFs in 2025, depending on their progress and findings.

He explained that they are closely analyzing the SEC’s stance. The SEC initially rejected the first two applications, but that doesn’t mean the opportunity is closed—remember, Bitcoin ETFs faced rejections for ten years before approval.

Bitwise is focusing on addressing concerns about market manipulation and showing protections through data. They’re enthusiastic about the Solana ecosystem and believe it’s strong, but the timing of their filings will depend on their research and results.

According to Odaily, FxPro Senior Analyst Alex Kuptsikevich has highlighted that long-term Ethereum developer activity, both on the blockchain and its expanding ecosystem, has been a driving force behind ETH's rise. However, by the end of 2023, this trend shifted towards Bitcoin, especially as the prospects of exchange-traded funds (ETFs) became more prominent.Kuptsikevich noted that the launch of Ethereum ETFs did not attract the same buying interest as Bitcoin ETFs. Instead, it led to net outflows and did not reverse the declining ETH/BTC exchange rate. The ETH/BTC rate could potentially fall further into the 0.02-0.03 range. This situation is surprising given the generally positive sentiment towards altcoins following Bitcoin's halving events and the higher beta coefficient of altcoins compared to U.S. stocks, which have performed strongly in recent months.

Long-term holders, not BlackRock, are to blame for Bitcoin's recent price weakness, according to Bloomberg senior ETF analyst Eric Balchunas. In a recent debate within the crypto community, some have argued that Coinbase giving BlackRock special access to borrow BTC via its cbBTC product and launch a spot Bitcoin ETF is putting downward pressure on the asset's price. However, Balchunas argues that this is not the case. "People want to blame the ETF wrapper for weak bitcoin because it's hard for them to fathom that their beloved long-term [hodlers] could be sellers," Balchunas said on his X (formerly Twitter) account. "But that's what's happening. All the ETF and BlackRock did was put a floor under bitcoin." Nate Geraci, CEO of U.S. ETF data and analytics firm ETF Store, agrees with Balchunas' assessment. "Coinbase literally owns the underlying BTC 1:1 for their physical ETF anyway," Geraci said on Twitter. "Similar conspiracy theories took place when the physical gold ETF came out." Geraci added that "these narratives are just peddled by people who don't understand how ETFs work."

Despite Ethereum’s (ETH) price showing positive movement, its associated spot ETF has been facing consecutive outflows. This perplexing trend raises questions about investor behavior and market dynamics. Here’s an in-depth look at why Ethereum’s ETF is experiencing outflows even as ETH’s price closes positively.

Ethereum ETF Sees $20 Million Outflow

Recent data indicates that Ethereum’s spot ETF saw outflows exceeding $20 million, marking the second consecutive day of negative flow.&middot

For the full story, head over to TheCurrencyAnalytics.com.

The ETH/BTC ratio has hit its lowest since April 2021, dipping below 0.04, signaling a decline in investor interest in ether relative to bitcoin.

The preference has swung towards bitcoin, which was influenced by the introduction of bitcoin ETFs, which saw significant inflows compared to ether ETFs experiencing net outflows.

Some traders say this shift indicates a broader market favoring bitcoin's perceived stability over ether's riskier, high-yield potential.

Analysts suggest the ETH/BTC ratio might drop further, potentially to the 0.02-0.03 range, unless there's a significant change in investor sentiment or regulatory clarity that might favor riskier assets like altcoins.

A closely watched ratio tracking the relative price strength of ether {{ETH}} against bitcoin {{BTC}} has dropped to its lowest level since April 2021, indicative of a fallout in investor demand for the world’s second-largest token.

The ether-bitcoin trading pair fell under 0.04 late Sunday to trade at 0.039 in European morning hours Monday, extending year-to-date losses to nearly 30%. Although colloquially called a ratio - ETH/BTC is simply the trading pair of ether against bitcoin on crypto exchanges, which attracts hundreds of millions in daily volumes.

Over the past five years, the ETH/BTC ratio has risen from 0.02 to a peak of above 0.08 in early 2022 - meaning ETH had quadrupled in value relative to BTC at the time.

Its value proposition has been on the decline ever since - bitcoin set fresh lifetime highs in April in U.S. dollars (before tumbling 20%), while ether is yet to break its highs from 2021 and is down 52% from its 2021 peak. Year-to-date, bitcoin has returned over 40% to investors while ether holders have gained just under 1%.

A surge indicates that ether is outperforming bitcoin and vice-versa. During a rise, traders consider a preference for ETH as beneficial for riskier assets and Ethereum ecosystem bets. On the other hand, a slide indicates a preference for Bitcoin and blockchains other than Ethereum.

Some traders say that demand for ether relative to bitcoin peaked in 2023, following which spot exchange-traded funds (ETFs) moved the goalposts in BTC’s favor.

“The long-term reason for the rise has been the activity of Ethereum developers, both in relation to the blockchain itself and the growing ecosystem around it,” FxPro senior analyst Alex Kuptsikevich said in an email to CoinDesk. “However, by the end of 2023, the trend shifted in Bitcoin's favor as the prospect of exchange-traded ETFs gained prominence.”

“It is important to note that the launch of ETFs on Ethereum has neither attracted similar buying interest, resulting in net outflows, nor reversed this downward trend in ratio,” Kuptsikevich added.

Ether ETFs have recorded net outflows of $580 million since going live in late July. In comparison, bitcoin ETFs took on over $12 billion in their first two months, and have recorded over $17 billion in net inflows in just over eight months of trading.

Technical aspects and the promise of better yield on other blockchains also contributed to the lack of demand for ETH, some opine.

“ETH/BTC is reaching new lows as the yield from staking ETH continues to be uncompetitive at around or less than 3% APR while staking stablecoins or trading other ecosystem tokens like TON deliver high yields,” crypto market researcher Nick Ruck said in a message to CoinDesk.

“BTC has also held up well within its range as the bitcoin spot ETFs recorded their best day of inflows in the last two weeks on Sept 13th, adding to its allure against ETH,” Ruck added.

Meanwhile, traders such as Kuptsikevich see further pain ahead for those betting on the ETH/BTC ratio.

“This ratio has the potential to fall further into the 0.02-0.03 range. This is surprising given the generally positive investor sentiment towards altcoins a few months after the BTC halving and the generally higher beta of altcoins to the stock market, which has been quite strong in recent months,” he noted.

“Investors are likely waiting for more clarity on the future monetary and regulatory regime. Only a sustained rally will encourage investors to seek higher returns and take more risks by buying altcoins,” Kuptsikevich concluded.

There is a clear performance difference between Bitcoin and Ethereum ETFs based on recent data. Since their launch, Ethereum ETFs have experienced a net outflow of 189,200 ETH, while Bitcoin ETFs have experienced a sizable net inflow of 305,000 BTC, marking a massive contrast between the two assets. 

With Ethereum still facing difficulties, Bitcoin has gained roughly $16.7 billion over Ethereum, indicating growing institutional interest in the former. The divergence in ETF flows points to a worrying pattern for Ethereum. It appears that institutions are losing interest in ETH, as many have sold their holdings covertly in recent months.

Ethereum's market performance has been directly impacted by this ongoing dumping, as seen by a discernible decline in transaction volume. Although Ethereum's blockchain has historically seen a lot of activity, its adoption and usefulness may be under pressure due to waning institutional confidence. 

Source: Dune

Ethereum's switch to proof of stake (PoS) may be one factor contributing to this decline in interest. Although PoS was expected to improve scalability and efficiency, some institutional players do not seem to be convinced of its long-term advantages. Another factor contributing to investor reluctance may be the ecosystem's complexity, which includes layer-2 solutions and frequent updates.

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Conversely, more conservative and risk-averse institutional players may be drawn to Bitcoin due to its established status. Ethereum's 189,000 ETH outflow illustrates the fact that in spite of the technological advancements that ETH provides, institutions still prefer Bitcoin as their asset of choice.

Ethereum needs to address these issues if it wants to rebuild market strength and institutional confidence, as indicated by the widening gap in net ETF flows. Ethereum may find it difficult to hold onto its position on the larger cryptocurrency market if the dumping of ETH persists and institutions continue to lean more toward BTC.

Bitcoin has recently experienced a surge in value, primarily driven by increased capital inflows into spot exchange-traded funds (ETFs). As reported by Bitfinex in its weekly "Bitfinex Alpha" analysis, spot ETF inflows reached a significant $403.9 million last week. Market analysts anticipate that ongoing volatility will accompany the approach and aftermath of the upcoming interest rate decision by the Federal Reserve. The outcome of this decision is expected to have a substantial impact on the cryptocurrency market. This surge in inflows underscores the growing institutional adoption of Bitcoin and other cryptocurrencies. As more traditional investors seek exposure to digital assets, spot ETFs offer a regulated and accessible entry point. The increased demand for Bitcoin through these channels has contributed to the recent price increase. However, the market remains cautious as the Fed's interest rate decision looms. The outcome of this decision will likely influence the broader financial markets, including the cryptocurrency sector. Volatility is expected to remain elevated leading up to and following the announcement, offering both opportunities and risks for traders and investors.

Bitcoin and Ethereum hold a significant share of the crypto market. While Bitcoin, as the first cryptocurrency, initiated the crypto trend, Ethereum competes closely with *BTC* in every aspect, including technological advancements and its working mechanism. Both Bitcoin and Ethereum possess investor-specific attributes that make them priorities in the market. Bitcoin and Ethereum together account for about 70% of the entire global crypto market cap. Bitcoin’s market cap is $1.1 trillion, which is much larger than Ethereum’s $285 billion market cap. However, Ethereum’s market cap is still more than three times bigger than any other cryptocurrency. This article provides an in-depth comparison of Bitcoin and Ethereum to offer a clearer picture on each investment aspect in 2024.

What is Bitcoin?

Bitcoin was launched in January 2009, based on a new idea outlined in a white paper by the mysterious Satoshi Nakamoto. It introduced Bitcoin as an online currency without a central authority, unlike government-issued currencies. Instead of physical coins, all transactions are recorded on a secure public ledger.

While Bitcoin wasn’t the first attempt at creating an online currency of this kind, it was the most successful. It has since become the foundation for almost all other cryptocurrencies.

Over time, the idea of a virtual, decentralized currency has gained acceptance among regulators and governments. In January, the SEC approved spot Bitcoin ETFs for trading, widening the exposure to big institutional investors.

Bitcoin is protected by cryptography, and transactions are verified through a process called mining. In mining, users compete to solve complex math puzzles using powerful computers to verify transactions. This method of verification is known as proof-of-work (PoW). Once a Bitcoin transaction is recorded on the public ledger, it is permanent and cannot be altered or tampered with in any way.

When a Bitcoin miner successfully adds a block of verified transactions to the blockchain, they earn a reward of newly created Bitcoins. Currently, that reward is 3.125 BTC per block, but it gets cut in half every time 210,000 blocks are added to the blockchain. Unlike traditional currencies, Bitcoin has a fixed limit of 21 million BTC that can never be exceeded. This cap on supply helps prevent inflation, and many Bitcoin investors believe these features will make it a valuable store of wealth over the long term.

What is Ethereum?

Ethereum is a blockchain platform designed to enable smart contracts and secure financial transactions. Its native cryptocurrency is called Ether.

Smart contracts are programs that allow decentralized applications (dApps) to run automatically on a blockchain when specific conditions are met.

The Ethereum network hosts various dApps, including those for gaming, gambling, socializing, and decentralized finance (DeFi). Most non-fungible tokens (NFTs) are also built on Ethereum.

Ethereum operates on a global network of thousands of computers, making it decentralized. In 2022, Ethereum switched from a power-hungry proof-of-work (PoW) system to a proof-of-stake (PoS) model. In PoS, validators are selected by an algorithm instead of miners solving puzzles. To become a validator, traders must stake some of their cryptocurrency as collateral. The more they stake, the higher their chances of being chosen to validate a block and earn rewards.

In July, the SEC finally approved spot Ethereum ETF trading. 

Ether’s supply isn’t capped, but it’s managed through a process called burning. Each time a transaction occurs on Ethereum, users pay a transaction fee, or “gas.” A portion of this fee is burned, effectively reducing the total supply of ETH. This has sometimes made Ether deflationary, meaning more *ETH* is destroyed than created. However, after the Dencun upgrade in March 2024, which lowered fees and reduced burning, Ether is currently inflationary.

Key Features of Bitcoin

Bitcoin’s design has some key features that have made it popular as the first digital currency without a central authority.

Blockchain Technology: Bitcoin uses a system called blockchain, which is like a public record book that tracks all transactions. Every time someone makes a transaction, it’s added to this record, and everyone can see it. Because it’s shared across many computers, it’s very hard to change, making it secure. This system allows Bitcoin to work without needing a bank or any central authority, which helps prevent fraud.

Mining Process: Bitcoin works through a process called mining, where people (called miners) use their computers to solve difficult puzzles. When they solve these puzzles, they help verify transactions and add them to the blockchain. In return, they earn new bitcoins as a reward.

Transaction Speed and Scalability: Bitcoin is designed to process a group of transactions every 10 minutes, which limits how many transactions it can handle at once. This has led to discussions about how to make it faster and more efficient. To improve this, solutions like SegWit and the Lightning Network have been introduced.

Scalability Solutions: To handle more transactions more quickly, Bitcoin has introduced tools like the Lightning Network, which allows some transactions to happen outside the main blockchain, making them faster and easier to manage.

Key Features of Ethereum

Ethereum’s design adds several new features that make blockchain technology useful for more than just transactions.

Smart Contracts: One of Ethereum’s biggest innovations is smart contracts. These are self-operating contracts where the terms of the agreement are written into the code. They automatically enforce and carry out the terms without needing a middleman, allowing for secure and decentralized transactions.

Ethereum Virtual Machine (EVM): The EVM is the environment where smart contracts run on Ethereum. It’s like a virtual computer that’s built into each Ethereum node and can run contract code. The EVM allows developers to create decentralized applications (DApps) on the Ethereum platform, making it a powerful tool for building various blockchain-based projects.

Shift to Ethereum 2.0: Ethereum has been upgraded to Ethereum 2.0, moving from a Proof of Work (PoW) system to a Proof of Stake (PoS) system. This change is meant to solve issues like scalability, security, and sustainability. Ethereum 2.0 also introduces a technique called sharding, which increases the network’s capacity and lowers transaction costs, making the platform more efficient for a wider range of uses.

Difference Between Bitcoin and Ethereum

Bitcoin and Ethereum are both well-known cryptocurrencies that run on decentralized blockchain networks, but they have some key differences. Here’s how they differ:

Bitcoin uses a proof-of-work (PoW) system to verify transactions, which requires significant energy. On the other hand, Ethereum uses a more energy-efficient proof-of-stake (PoS) system.

Bitcoin is primarily designed to function as a digital currency, serving as an alternative to traditional currencies like the U.S. dollar, and can be used to buy goods and services. Ethereum, however, is mainly a platform for running smart contracts and decentralized applications (dApps), with Ether (ETH) being the native cryptocurrency used for transactions within the network.

Bitcoin has a limited supply of 21 million coins, while Ether’s supply is theoretically unlimited. Although Ether has been deflationary at times, its supply has been increasing since transaction fees were significantly lowered in March 2024.

The future value of Bitcoin will likely depend on its acceptance as a global currency and its use as a hedge against inflation and a store of value. In contrast, Ether’s value will likely be influenced by the growth and popularity of the Ethereum network, including the expansion of dApps and smart contracts.

Market Performance: Bitcoin Vs Ethereum

The market performance of Bitcoin and Ethereum offers an interesting look into how cryptocurrency markets work, with both experiencing big price changes over time due to various factors.

Historical Price Trends

Bitcoin: Since it started in 2009, Bitcoin’s value has skyrocketed, though not without major ups and downs. Its price stayed low until late 2013 when it saw its first big surge. The most notable peak was in late 2017 when Bitcoin’s price almost hit $20,000, followed by a steep drop. 

In the years that followed, Bitcoin’s price continued to fluctuate, reaching record highs above $60,000 in 2021 and again in 2024, showing how volatile but generally upward its market performance has been.

Ethereum: Launched in 2015, Ethereum has also seen a lot of price swings. Its first major rise happened in 2017 during a broader cryptocurrency boom, peaking at around $1,400 in early 2018. 

Like Bitcoin, Ethereum’s price has had big movements, especially with significant growth in 2020 and 2021, hitting new highs above $4,000, reflecting its increasing use, particularly in the booming decentralized finance (DeFi) sector.

Factors Influencing Price

Several key factors drive the prices of Bitcoin and Ethereum, including market demand, technological upgrades, and investor sentiment.

Market Demand: The demand for Bitcoin and Ethereum is shaped by their perceived value and usefulness. Bitcoin is often viewed as digital gold, a hedge against inflation, and a store of value, leading to higher demand during times of economic uncertainty. Ethereum’s demand is boosted by its role in the DeFi and NFT sectors, where it serves as the foundation for many applications and platforms.

Technological Upgrades: Advances and upgrades in technology also impact prices. For Bitcoin, improvements in scalability and security through updates like SegWit and the Lightning Network have positively influenced its price. Ethereum’s ongoing upgrade to Ethereum 2.0, which aims to improve scalability, efficiency, and sustainability by shifting to Proof of Stake, has been a major factor in its price trends.

Investor Sentiment: How investors feel about the market, influenced by news, regulatory changes, and the economy, greatly affects the prices of both cryptocurrencies. Positive news, such as big institutions adopting the currencies, endorsements from well-known figures, or favorable regulations, can drive prices up. On the other hand, negative news or uncertain regulations can lead to sharp price drops.

Is Ethereum Losing Ground to Bitcoin?

As we enter 2024, many crypto enthusiasts and investors are wondering: Should they sell Ethereum for Bitcoin? Has Bitcoin now surpassed Ethereum in long-term growth potential? With Bitcoin outperforming Ethereum by over 44% since the Ethereum Merge, the market is feeling the pressure. Let’s take a closer look at the current ETH vs. BTC situation, the potential risks, and what might be ahead for these two leading cryptocurrencies.

A key point is that Bitcoin has outperformed Ethereum since the Ethereum Merge nearly two years ago. Data from ultrasound.money shows Bitcoin has gained 44% more than Ethereum since then, raising concerns about Ethereum losing its edge. The main reason for this difference lies in their supply dynamics.

Bitcoin’s 2024 halving event cut the creation of new coins in half, making Bitcoin increasingly scarce. Meanwhile, Ethereum’s supply has grown, especially after its recent “Denon” upgrade. Although Ethereum has burned more ETH than it has issued over time (a deflationary effect), its supply has increased in the short term, which some believe has led to its recent underperformance.

Institutional Adoption Lacks in Ethereum ETF

Recent data shows that Ethereum’s supply has increased by nearly 1 million ETH in the past year, which is about 1% inflation. While this might seem worrying, it’s important to note that since the Ethereum Merge, the total ETH supply has actually decreased by 0.08%. This paints a mixed picture: short-term supply increases may be causing recent underperformance, but the long-term outlook remains deflationary due to the introduction of Ethereum Improvement Proposal (EIP) 1559.

Another factor is the impact of institutional investors and Ethereum ETFs. Ethereum ETFs have seen significant outflows, with over half a billion dollars leaving since their launch. Major institutions like Grayscale have also sold off a large amount of Ethereum, totaling $2.6 billion in outflows since the ETF launch, which has hurt ETH’s performance.

However, there’s some positive news: BlackRock, the world’s largest asset manager, has brought in about $1 billion in Ethereum ETF inflows, showing that there’s still strong interest from major players. While Grayscale is still selling, we might see a shift back to net buying once these sell-offs settle down.

Understanding the difference between short-term inflationary pressures and long-term deflationary trends is crucial to see why Ethereum has struggled recently but could still bounce back in 2024.

ETH-BTC Ratio Trends Lower

Ether has dropped 35% in the last 90 days, while Bitcoin has only fallen by 15% during the same period.

The ETH/BTC ratio has also decreased by about 22% over the past three months, hitting a multi-year low of 0.0405 recently. The drop in the ETH/BTC ratio shows that investors are favoring Bitcoin over Ether, leading to lower demand for Ether. For context, US spot Bitcoin ETFs have been more successful since the SEC approved them on January 10, compared to spot Ethereum ETFs.

According to onchain data provider Glassnode, these ETFs have had a bigger impact on Bitcoin’s price (8% of the spot volume) than on Ether’s price (only 1% of the spot volume).

“This indicates that interest in the Bitcoin ETF is significantly higher than in the Ethereum ETF.”

Bitcoin’s Dominance Didn’t Slow Down

Ether’s weak performance against Bitcoin has also been affected by Bitcoin’s growing dominance in the market.

In 2024, Bitcoin’s market dominance increased, hitting a 40-month high of 58% on August 5. This means Bitcoin is gaining strength compared to other cryptocurrencies, including Ether. Bitcoin dominance measures BTC’s market cap compared to the total crypto market and is often used by investors to understand market sentiment.

As Bitcoin’s dominance continues to rise, ETH’s value against Bitcoin is likely to keep dropping, suggesting that investors are more optimistic about Bitcoin and may be investing less in Ether.

Ethereum’s On-chain Metrics Turn Bearish

Tracking the number of active addresses on a network is a quick and reliable way to see how much the blockchain is being used and how much demand there is for the token.

Currently, the 30-day average of daily active addresses on the Ethereum network is 430K, which is a 7.7% drop from 90 days ago and much lower than the 686K seen in May 2021. This decrease in active addresses suggests that fewer people are using the Ethereum blockchain, leading to fewer Ether transactions. Looking at the number of unique active wallets (UAWs) on Ethereum provides a broader picture of how many decentralized apps (DApps) are being used on the network.

According to DAppRadar, active addresses for Ethereum DApps have fallen by 19% in the past 30 days. This decline is concerning, especially since other blockchains like Solana and Tron saw increases of 257% and 343% in UAWs over the same period. For ETH to rise above $2,400, the network needs to see more growth, more Ether transactions, and increased DApp usage.

Will Ethereum Dominate Bitcoin?

So, the big question is: Can Ethereum bounce back and outperform Bitcoin next year? Historically, Ethereum has done better than Bitcoin during bull markets, especially in the years after Bitcoin halving events. The idea is that Ethereum’s large ecosystem, which includes decentralized finance (DeFi), NFTs, and smart contracts, could fuel its growth. However, it’s worth noting that Ethereum has lagged behind Bitcoin for the past three years, which has some investors concerned.

Looking ahead, technical analysis shows that Ethereum is close to a key support level. If it holds, we might see a major price surge, following a pattern seen in previous cycles where Ethereum tests support before jumping in price. Some analysts believe Ethereum could experience another price spike before the end of Q4 2024, assuming favorable macroeconomic conditions.

Bold Predictions on Bitcoin and Ethereum

Looking ahead, many are making bold predictions about the future. The general belief is that Bitcoin could triple or even quadruple in this cycle, possibly reaching as high as $165,000. If Bitcoin hits these levels, Ethereum could be expected to reach about 8% of Bitcoin’s value, which would put ETH at around $13,200. However, breaking through the psychological barrier of $10,000 might be tough, meaning Ethereum would need a very strong market to go higher.

Why $13,000 for Ethereum Isn’t Unrealistic

While $13,000 for Ethereum might seem unlikely, history shows that ETH has seen huge gains during bull markets, especially after Bitcoin halvings. In the last bull run, Ethereum reached nearly 9% of Bitcoin’s value, and in earlier cycles, it hit as high as 15%. While those highs might not repeat, an 8% ETH-BTC ratio is definitely possible, especially given Ethereum’s ongoing importance in DeFi and NFTs.

Of course, the biggest risk is the unpredictable nature of crypto markets. While many analysts are optimistic about both Bitcoin and Ethereum, potential challenges like regulatory changes, economic shifts, or unexpected technological developments could impact their performance. Anyone investing in ETH or BTC should be aware of these risks.

How to Invest in Bitcoin and Ethereum?

Investors can easily buy Bitcoin and Ether on popular cryptocurrency exchanges like Coinbase, Gemini, and eToro. They can also purchase these cryptocurrencies through a brokerage account with platforms like Robinhood, Interactive Brokers, TradeStation, or even through PayPal or Venmo.

Both Bitcoin and Ether have futures contracts available for trading on the Chicago Mercantile Exchange. While futures trading can be complex, there are several Bitcoin and Ether ETFs that hold these futures contracts. Examples include the ProShares Bitcoin Strategy ETF (BITO), the VanEck Ethereum Strategy ETF (EFUT), and the ProShares Ether Strategy ETF (EETH).

As of January 2024, Bitcoin investors can also buy spot Bitcoin ETFs, which hold the actual cryptocurrency instead of futures contracts. The SEC has approved several spot Bitcoin ETFs for trading on major U.S. exchanges, including:

ARK 21Shares Bitcoin ETF (ARKB)

Bitwise Bitcoin ETF (BITB)

Fidelity Wise Origin Bitcoin Trust (FBTC)

Franklin Bitcoin ETF (EZBC)

Grayscale Bitcoin Trust (GBTC)

Hashdex Bitcoin ETF (DEFI)

Invesco Galaxy Bitcoin ETF (BTCO)

iShares Bitcoin Trust (IBIT)

For investment in Ethereum ETFs, here are some top funds:

Shares Ethereum Trust (ETHA)

Fidelity Ethereum ETF (FETH)

Bitwise Ethereum ETF (ETHW)

VanEck Ethereum ETF (ETHV)

Franklin Ethereum ETF (EZET)

Investment Perspectives: Bitcoin and Ethereum

Experts are generally optimistic about Bitcoin and Ethereum, although they recognize that these cryptocurrencies could experience price fluctuations due to changes in regulations, technological progress, and how widely they are adopted.

At Blockchain Reporter, we believe in the long-term potential of Bitcoin and Ethereum as investments. In its early days, Bitcoin was mainly used by a small group of tech enthusiasts. It was hard to get, had limited uses, and only a few merchants accepted it as payment. However, by 2023, Bitcoin has become much more mainstream. More businesses now accept Bitcoin as payment, and there are better tools, like user-friendly wallets and exchanges, making it easier for the average person to use.

Institutional interest in Bitcoin has also grown. Hedge funds, asset management firms, and endowments are starting to see Bitcoin as a valuable asset that can help diversify their portfolios and protect against inflation.

We are also bullish on decentralized software protocols, which offer an alternative to current intermediaries. Among these, Ethereum stands out as a likely leader in capturing significant economic value. We believe that by 2030, Ethereum could become a major force in digital assets, with its token potentially reaching a value of $11.8k.

FAQ

What are Bitcoin and Ethereum?

Bitcoin is the first decentralized cryptocurrency, created in 2009, often referred to as “digital gold.” It primarily functions as a store of value and medium of exchange.

Ethereum, launched in 2015, is a decentralized platform that enables smart contracts and decentralized applications (dApps), with Ether (ETH) as its native cryptocurrency.

What are the key differences between Bitcoin and Ethereum?

Bitcoin is mainly a digital currency, focusing on being a store of value and transactional utility. It operates on a proof-of-work (PoW) consensus.

Ethereum supports smart contracts and dApps, allowing for more diverse blockchain uses. Ethereum shifted from PoW to a proof-of-stake (PoS) model in 2022 to improve energy efficiency and scalability.

Which is more scalable: Bitcoin or Ethereum?

Ethereum is more scalable due to its Ethereum 2.0 upgrade and the PoS model, which supports faster transaction speeds and lower fees.

Bitcoin has scalability solutions like the Lightning Network, but its transaction capacity remains lower compared to Ethereum.

What is Bitcoin’s market cap compared to Ethereum’s?

Bitcoin’s market cap is around $1.1 trillion, making it the largest cryptocurrency by far.

Ethereum’s market cap is approximately $285 billion, still significant but much smaller than Bitcoin.

Why is Bitcoin considered a better store of value?

Bitcoin has a fixed supply of 21 million coins, making it deflationary by design. This scarcity is often viewed as a hedge against inflation, similar to gold.

How does Ethereum’s supply work?

Ethereum’s supply is uncapped but is managed through a burning mechanism that reduces supply over time, particularly during high network activity.

What are the risks of investing in Bitcoin vs Ethereum?

Bitcoin risks include regulatory concerns and scalability challenges.

Ethereum risks involve competition from other blockchain platforms and potential vulnerabilities in its PoS model.

Which coin has better long-term growth potential?

Bitcoin is likely to maintain its position as the leading store of value, while Ethereum offers more utility through its smart contracts and dApps, potentially offering higher long-term growth due to its versatility.

How can I invest in Bitcoin or Ethereum?

You can purchase Bitcoin and Ethereum through popular cryptocurrency exchanges like Coinbase, Binance, or Robinhood. There are also Bitcoin and Ethereum ETFs available on major stock exchanges.

What are the key price predictions for Bitcoin and Ethereum in 2024?

Bitcoin could reach as high as $165,000 according to some analysts.

Ethereum is projected to potentially rise to $13,000, depending on market conditions and the continued growth of the Ethereum network.

In its latest weekly report, CoinShares has revealed an incredible change in the flow of funds into crypto exchange-traded products, with Bitcoin (BTC) seeing a massive $436 million in ETF inflows last week. This surge came after a period marked by $1.2 billion in outflows over the previous 10 days. 

As analyst James Butterfill explains, the major rebound in inflows is mostly due to a change in how the market thinks about the chance of an interest rate cut by 50 basis points on Sept. 18.

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Despite the recent positive turn, Bitcoin's month-to-date figures show $209 million in outflows, which is a pretty stark contrast to its year-to-date inflows, which have reached an impressive $20.775 billion. 

Source: CoinSharesWhat's more?

Meanwhile, it is worth noting that short-Bitcoin vehicles saw an outflow of $8.5 million, after three weeks of inflows. Ethereum is facing its own set of challenges and saw $19 million in outflows, with still $708 million year-to-date inflows. 

On the other hand, Solana showed some staying power, amounting to $3.8 million with its fourth straight week of inflows.

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Vehicles oriented around blockchain technologies also have seen a positive shift, with $105 million in inflows thanks to the seeding and launch of several new ETFs on the U.S. market.

Matt Hougan, the CIO of Bitwise, recently said that he is interested in launching ETFs centered on meme cryptocurrencies. This means that assets like Shiba Inu (SHIB) or Dogecoin (DOGE) might soon be available for investment, which will give investors more options.

Bloomberg Analyst: Bitcoin Weakness Caused by Long-Term Holders, Not BlackRock

Amid recent controversy in the cryptocurrency community regarding BlackRock’s alleged influence on Bitcoin prices through Coinbase’s cbBTC, Bloomberg’s senior ETF analyst, Eric Balchunas, has refuted these claims. According to Balchunas, the primary cause of Bitcoin’s recent price weakness is not related to BlackRock or the opacity of its Bitcoin spot ETF, but rather the selling activities of long-term Bitcoin holders, commonly referred to as “HODLers.”

Key Points from Eric Balchunas

1. Long-Term Holders Selling:

In response to allegations that BlackRock’s Bitcoin ETF is putting downward pressure on Bitcoin prices, Balchunas argued that many in the community are overlooking a more plausible explanation. “It’s inconceivable to them that native HODLers can become sellers. But this is actually happening,” Balchunas stated on X (formerly Twitter). He emphasized that long-term holders have been selling Bitcoin, which is driving price weakness.

2. ETF and BlackRock’s Role:

Balchunas dismissed the notion that BlackRock and its Bitcoin ETF are to blame for the price decline. He stated that ETFs, including BlackRock’s, have actually helped stabilize Bitcoin’s price during downturns by pulling it back from lower levels, counteracting some of the market’s volatility.

Rebuttal from Nate Geraci

1. Conspiracy Theories About ETFs:

Nate Geraci, CEO of ETF Store, also weighed in on the debate, addressing the conspiracy theories surrounding Coinbase’s alleged involvement with BlackRock’s Bitcoin ETF. He pointed out that Coinbase holds Bitcoin on a 1:1 basis for the physical ETF, ensuring that the underlying asset is properly backed. Geraci likened the situation to similar claims made when gold physical ETFs were launched, stating, “People who repeat such claims do not understand how ETFs work.”

2. Clarifying the ETF Mechanism:

Both Balchunas and Geraci emphasized that the operations of ETFs are transparent and subject to regulatory scrutiny, refuting the idea that BlackRock could be using its ETF to manipulate Bitcoin prices. They argued that the decline in Bitcoin’s price is not due to ETF-related practices, but rather market dynamics, including the actions of long-term Bitcoin holders.

The Broader Debate

1. BlackRock and Bitcoin Market Sentiment:

BlackRock’s entry into the Bitcoin space has generated both excitement and skepticism. While some believe that the presence of major institutional players like BlackRock will ultimately stabilize Bitcoin and boost its legitimacy, others are wary of the potential for market manipulation.

2. Role of Long-Term Holders:

The recent sale of Bitcoin by long-term holders has caught many off guard. Traditionally viewed as steadfast, long-term holders exiting their positions can indicate a shift in sentiment and contribute to market volatility, particularly if these sales happen in large volumes.

Conclusion

Eric Balchunas’s analysis suggests that Bitcoin’s recent price weakness is more attributable to the selling activities of long-term holders than to any actions by BlackRock or its ETF. Alongside Nate Geraci’s clarification on how Bitcoin ETFs operate, the discussion highlights the importance of understanding market dynamics before attributing blame to institutional players. As the debate continues, the focus remains on how long-term holders and institutional involvement will shape Bitcoin’s price trajectory.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.

The post Bitcoin ETF Weekly Update (09th Sept – 13th Sept) appeared first on Coinpedia Fintech News

Reportedly, the BTC ETF has recorded a positive trading week by closing 4 out of 5 days in green. During these four days, the total inflow recorded was $447.8 million. On the other, hand it recorded an outflow of $43.9 million on 11th September. Furthermore, the Grayscale’s “GBTC” broke its 12-day outflow streak by adding $6.7 million on 13th September. With this, the total flow for the week concluded at +$403.9 million.

The recent emergence of Grayscale’s XRP Trust has fueled speculation about a potential Ripple ETF. If approved, a Ripple ETF could raise XRP’s price and potentially impact other altcoins like RCO Finance (RCOF), which supports various asset classes, including ETFs.

Let’s see how this development is going to unfold. 

RCO Finance (RCOF): Optimising Altcoin Investments with Advanced Algorithms and Security

The XRP Trust, owned by Grayscale, has again brought the debate on the Ripple ETF into the market, which may help increase liquidity and demand for altcoins. 

As crypto experts have pointed out, this shift could open new opportunities for crypto trading platforms with sophisticated features such as RCO Finance (RCOF) 

At the heart of this DeFi trading platform lies its innovative Robo-Advisor, which uses sophisticated AI and ML algorithms to make the right decisions in a constantly changing environment. 

Since more people are focusing on altcoins like XRP due to the rumors about the ETF, Robo-Advisor can assist investors in making the right investments in these opportunities. 

Diverging from traditional financial advisors, the AI Robo-Advisor operates impartially, basing decisions solely on data and logic. Operating 24/7, this revolutionary trading tool ensures RCO Finance users are consistently well-positioned to capitalize on emerging opportunities. 

Moreover, RCO Finance has partnered with SolidProof, a leading security firm, to improve its security standards. Auditing smart contracts is a core competence of SolidProof, which improves the security of RCO Finance and increases users’ confidence in the platform. 

Revitalising Ripple (XRP): Grayscale’s Strategic Return to the Market

Grayscale’s new XRP Trust returns to the XRP market after liquidating its holdings in 2021 due to regulatory issues and challenges with converting XRP to USD. 

This re-entry reflects renewed confidence in Ripple (XRP) despite ongoing regulatory scrutiny, fueled by Grayscale’s recent successes with Bitcoin and Ether ETFs. 

Launched on September 12 in the U.S., Grayscale’s XRP Trust has had an immediate impact, with Ripple (XRP) experiencing an 11% increase over the week and daily trading volumes surging to $1.1 billion. 

Notably, the launch has influenced XRP and has triggered a rally across the altcoin market.

Currently trading around $0.57, experts remain optimistic about Ripple’s (XRP) future potential. With growing market interest, XRP may test the $0.611 resistance level and, if bullish momentum continues, could break through the $0.64 resistance mark.

Traders Gain Profit Edge with RCO Finance (RCOF)

RCO Finance offers advanced trading capabilities up to 1000x, which enables investors to manage more significant positions with less capital and make more significant profits. 

This feature opens up more profit possibilities, thus making it suitable for mostly professional traders. 

Additionally, RCO Finance enables its users to invest without going through the KYC procedures, making the trading process easier and protecting the user’s identity. This feature helps investors participate without the usual time-consuming procedures related to the verification process. 

Grayscale’s XRP Move: A Catalyst for RCOF’s Success! 

The recent return of Grayscale’s XRP Trust has rekindled conversations about a potential Ripple ETF. This could shake up the altcoin market, with RCO Finance (RCOF) taking the lead. 

In its second presale stage, RCOF has risen an impressive 169% to its current altcoin price of $0.0344.

This growth hints at further potential, with the upcoming presale stage anticipated to see a 62% increase to $0.0559. Even more exciting, projections suggest RCOF could skyrocket over 1,644% throughout the remaining presale stages, potentially hitting $0.6.

As per Coincodex, Ethereum has showcased a remarkable ROI of 64.46x against Bitcoin. This underlines the promising prospects for RCOF’s expansion within the RCO Finance ecosystem, with the token price potentially soaring by 10,000x shortly after its launch.

So what are you waiting for?  Don’t miss out—join RCOF’s presale now!

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Visit RCO Finance Presale

Join The RCO Finance Community

The post Grayscale’s XRP Product Revives Ripple ETF Rumors: What’s the Potential Impact on the Altcoin Sector? appeared first on TheCoinrise.com.

Bitcoin ETFs bought 6,892 BTC this week, nearly three times the 2,250 BTC mined, showing strong institutional demand.

Since January, Bitcoin ETFs have acquired 291,442 BTC, significantly outpacing the 162,364 BTC mined during the same period.

The rising Bitcoin ETF demand contrasts with a lower mining supply, indicating a potential supply squeeze and market stabilization.

The U.S. Bitcoin Exchange Traded Funds (ETFs) buy Bitcoin faster than the new BTC produced weekly. Bitcoin ETFs bought 6,892 BTC in the last seven days, whereas miners have created 2,250 BTC.

Rising Institutional Accumulation of Bitcoin

This growing demand for ETFs confirms a very important factor concerning institutional investors. Investors use more Bitcoin than is produced, implying probable supply and demand. Additionally, this dynamic may affect the relative volatility of Bitcoin's price, pointing to the growing involvement of institutional investors in the market.

Bitcoin ETFs launched in the United States in January have purchased 291,442 BTC. During the same period, only 162,364 BTC have been mined. For instance, on September 13, the Bitcoin ETFs purchased 4,402 BTC while the miners only produced 450 BTC.

This massive demand by ETFs points towards the direction where institutional players have become the main source of demand for bitcoins. However, constant accumulation of ETFs may reduce the volatility of BTC prices because more coins are locked away in long-term investments rather than being actively traded.

Impact on Bitcoin’s Liquidity and Market Dynamics

The difference between the number of mined Bitcoins and ETFs bought indicates a considerable change in liquidity within the market. Additionally, the current demand for ETFs shows that they buy more than what is being mined. Hence, the available quantity is reduced for trading at better prices.

This could also minimize the stock's aggressiveness, resulting in a more stable market. Also, the role of institutional investors is becoming more apparent, indicating an increasingly strategic market driven by fundamental players rather than swing traders.

Hash Rate Increase Amid Rising ETF Demand

As the ETF demand for Bitcoin goes up, the network's hash rate also goes up, showing the efforts made by miners to protect the network. Nevertheless, even with a higher hash rate, the number of bitcoins created is much lower than the amount purchased by ETFs.This gap could lead to a new market condition whereby institutional purchases will always prop up the Bitcoin price.

The post Bitcoin ETFs Continue To Outpace Miners In Weekly BTC Demand appeared first on Crypto News Land.

As the hype surrounding Bitcoin (BTC) ETFs fades, investors are shifting their focus toward promising alternatives like Chainlink (LINK) and FXGuys ($FXG) in its presale stage. Bitcoin ETFs are facing increased uncertainty, making investors diversify into the altcoin world. Chainlink and FXGuys offer real prospects for stability and growth, attracting retail and institutional investors targeting […]

The post Is The Hype Over On Bitcoin ETFs? Investors Spot Real Prospects On Chainlink And FXGuys appeared first on TechBullion.

Concerns expressed by the cryptocurrency community regarding Coinbase's handling of Bitcoin ETFs have been addressed by Coinbase CEO Brian Armstrong. Justin Sun's tweet, which expressed doubt about centralized Bitcoin exchange-traded funds (ETFs) on the grounds that they do not have proof of reserve and can freeze anyone's balance at any time, sparked this conversation.

How Coinbase manages ETFs

Armstrong responded by utilizing the occasion to explain Coinbase's stance and its approach to managing ETF-related activities. He gave the community confidence by saying that all of Coinbase's ETF minting and burning operations are finally settled on-chain, guaranteeing security and transparency.

Baldilocks here.Not sure what this is all about TBH. All ETF mints and burns we process are ultimately settled onchain. Institutional clients have trade financing and OTC options before trades are settled onchain. This is the norm for all our institutional clients. All funds…

— Brian Armstrong (@brian_armstrong) September 14, 2024

Before the last on-chain settlement was carried out, Armstrong stressed that institutional clients are provided with a variety of options, including trade financing and OTC (over-the-counter) trades. This preserves safe on-chain settlements while granting large-scale client's flexibility. Armstrong clarified a few important things, one of which was audits. Armstrong brought up the issue of proof of reserves, but he also pointed out that Coinbase is audited yearly by the respected auditing firm Deloitte.

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Institutional clients should feel more confident about the security and authenticity of their funds as a result of this. He talked about the characteristics of centralized Bitcoin ETFs (cbBTC) as well as acknowledging that investors do in fact put their trust in a centralized custodian to hold the underlying cryptocurrency. Coinbase has never asserted anything different regarding this.

Centralization concerns

Armstrong noted that although centralized custody carries some inherent risks, this is the price for allowing significant institutional capital to enter the Bitcoin market. The discussion touches on a deeper issue of trust and decentralization principles that the cryptocurrency community is concerned with.

Since Bitcoin was intended to function on decentralized principles, there is still mistrust regarding centralized control over assets like it even with Coinbase's open process and yearly audits.