2024 has been anything but short of milestones for the largest crypto assets on the market – Bitcoin and Ethereum. The former saw exchange-traded funds tracking its price receive the green light from the SEC in January of this year, after months of unsuccessful trials, and the reward received by miners for verifying blocks cut in half. Now, Ethereum is making headlines owing to the accomplishment of its previous exchange-traded fund legality. Big investment firms that have been all about launching investment funds tracking it have received after a well-awaited victory, which is expected to be auspicious for the asset and push its price on an upward trajectory.
ETH ETFs are trading within the U.S. market, though the asset’s performance doesn’t hint at this milestone. Nevertheless, many crypto market experts and analysts keep their hopes high concerning recovery and expansions if you look into the Ethereum price prediction 2025. It’s just that the broader view is that Ethereum could meet the raised expectations and be impacted by the launch of the ETF backing after some time. Market analyst Grzegorz Drozdz emphasizes that when looking at Ethereum’s price, it’s important to remember that the debut of Bitcoin ETFs triggered a price decline of around 18% despite the new capital injections.
Although price performances have demonstrated a somehow similar pattern, market trends are in support of Ethereum over Bitcoin as the ETF debut approaches. A recently launched report by Kaiko, a leading crypto data provider, exhibited shifting market preferences and an inclination toward Ethereum that could send its price to new peaks, overshadowing the crypto king.
Ethereum could sweat it out, reports show
Crypto markets have been highly volatile lately, altering specifically since the American watchdog greenlighted ETH ETFs. Investors exhibited positivity and optimism, and the enormous landscape change in spot trading volumes, options, futures, and perpetual contracts stands as proof.
As suggested by the research, ETH rejoiced over more volatility rewards compared to BTC. This was mostly generated by the boost in address activity and the positive inclination toward Ethereum of the market sentiment. Recent price movement emphasizes this, as the Ethereum to Bitcoin ratio has supported a positive value, standing at 0.05 from the time the funds launched.
The improved ratio posits that Ethereum’s price may continue outshining the leader’s cost as ETH ETFs continue trading. The journey has just started, so the best way to avoid disappointment is to give the market some time before drawing unshakeable conclusions.
ETH ETFs could bring good fortune
Spot Ethereum exchange-traded funds (ETFs) have long been trading in Canada, European countries, and other places, witnessing approval from the SEC to be transacted in the U.S. only recently. Compared to the situation in Canada, when Ethereum ETFs needed only two months to be approved after the triumph of Bitcoin-based ones, the U.S. investment firms had a longer journey to see their conceptualized investment vehicles go live.
Ethereum ETFs may have been released in 2017, two years after the cryptocurrency’s launch, but it wasn’t until 2019 and 2020 that Canada and Europe saw the compelling debut of each. Investment tools rose to popularity during the crypto bull market in 2021, and 12 such funds were introduced across Canada, Europe, and Brazil.
This milestone, accompanied by factors like enhanced market sentiment and the crypto market trends, paved the way for the asset to new price points. For instance, the first ETH ETF launched in Canada started trading in April and saw the crypto’s price rise from around $2,300 to an ATH of nearly $4,200 in the subsequent months. Q3 also started on the right foot, as the $2,500 to $4,800 course was smooth. The asset began falling the following year, but the massive spikes registered after ETH ETFs went live emphasized investors’ excitement concerning ETH investments surrounding such a milestone.
Ethereum follows Bitcoin’s path after ETF greenlighting
Now that we’re aware of Ethereum’s journey in one of its most important years, it’s essential to look at Bitcoin’s performance amid such times. Bitcoin may have been launched this year in January in the U.S., but it began exploding in March and reached an ATH of over $73,000, registering a 35% rise. Similarly, Bitcoin only commenced its upward trajectory three months after its ETF launch, jumping from around $51,000 to more than $64,000 amid the Canadian rally.
After ETFs entered European markets, Bitcoin needed less than six months to breach the $68,000 level. All being well, Ethereum could follow the same pattern as Bitcoin and Bitcoin did after their ETF launches in Canada and Europe, meeting the expectations of many users and experts. So far, it has already improved by 51% since the year’s commencement, a performance that is $1,000 less than 2021’s rally.
The largest prediction market worldwide, Polymarket, has conducted a poll to determine what traders expect from Ethereum’s performance over the next few months. Around 30% of individuals invested in the largest live market believe ETH might jump over $4,600 leading up to Q4. On the other hand, 13% of individuals in a different pool believe ETH could surpass an astronomical $10,000 by the year’s final, whereas 8% project it over an ATH of $15,000 during the same timeframe.
The rest of the pool participants shared half-hearted or even dispirited views, which is normal in a market characterized by unpredictability.
ETH rose more compared to BTC
Since the May milestone announcement, Ethereum has overtaken the forerunner in several aspects. Despite the volatility registered during May, June, and July, ETH Futures bounced back quicker and higher than Bitcoin’s Open Interest. ETH’s swift rebound points to increased investor confidence, with many looking to diversify their investment portfolio through the asset. Trading volumes for ETH have revolved around the same points since the second half of Q2 while liquidity stood within the $250M range.
The excitement built up as the SEC’s approval was nearing, which was a massive contributor to the heightened prospects. Ethereum-based perpetual contracts experienced heightened trading volume, disclosing that investors would pay more to keep long positions owing to Ethereum’s auspiciousness.
The market sentiment indicates a lot of confidence in Ethereum’s future, so stay up-to-date with everything going on with the second-best crypto.
