The US Securities and Exchange Commission (SEC) made a groundbreaking decision by approving bitcoin Exchange-traded funds (ETFs), marking a significant milestone for the crypto market. This development allows investors to gain exposure to the world’s largest cryptocurrency, Bitcoin, without directly owning it. The decision comes after a decade of attempts to establish ETFs for Bitcoin. However, rather than rallying Bitcoin, the decision has sparked a surge in Ether, the second-largest cryptocurrency. This is because investors have shifted their focus to potential tailwinds for Ether in anticipation of its own ETF approval. Since September 7, Ether has experienced a 43% loss in value compared to Bitcoin.
Ethereum Benefits from Regulatory Decision
Ether, the second-largest cryptocurrency, has emerged as one of the primary beneficiaries of the US regulators’ decision to approve Bitcoin ETFs. Investors have redirected their attention towards Ether’s potential after awaiting the official SEC’s decision on Bitcoin ETFs. This shift in focus has resulted in Ether prices surging. However, the newfound interest in ETFs has not been exclusive to Ether. Bitcoin’s value has experienced fluctuations, with a fall observed prior to the SEC’s decision, while Ether marks a 12% surge to its highest level since May 2022.
“The SEC’s approval of Bitcoin ETFs has created a mixed bag of price action in the crypto market, as the fallout from the fake Bitcoin ETF approval impacts market dynamics.” – Crypto market analyst
The recent developments in the crypto market also witnessed hacking targeting the SEC’s official Twitter account, causing further chaos. Despite this, Ethereum maintained a robust position during the event, with its price showing signs of strength and aiming to break the 2,400 level. The rise of Ether, driven by the anticipation of future ETF approval, indicates the growing interest in cryptocurrencies beyond Bitcoin, especially when it comes to the potential of Ethereum.
5. CoinTelegraph: Bitcoin wobbles, Ether soars: crypto market mixed post-fake ETF drama