The tide is turning for altcoins. Following the successful launch of several Bitcoin ETFs, the cryptocurrency community is abuzz with anticipation for a spot Ethereum ETF. This positive sentiment has fueled a recent price surge across the altcoin market, with some tokens experiencing significant gains.
Altcoins Surge Fueled by Ethereum ETF Anticipation
Data from Santiment, a leading crypto analytics platform, reveals a clear correlation. The prospect of an Ethereum ETF has triggered a price surge across several altcoins. Over the past 48 hours, Ethereum (ETH), Uniswap (UNI), Pepe (PEPE), Bonk (BONK), and Lido DAO (LDO) have all witnessed price hikes exceeding 20%. Market capitalization has also seen a significant boost, with BONK, UNI, and LDO experiencing increases of 44%, 43%, and 38% respectively.
This altcoin rally even overshadowed Bitcoin’s recent climb above $72,400, a feat last achieved six weeks ago. As Santiment aptly noted on Twitter: “The hype surrounding Ethereum’s first spot ETF has been a catalyst for one of crypto’s top 5 days of 2024.”
The potential approval of multiple altcoin-based ETFs hinges heavily on the green light for a spot-based Ethereum ETF. A positive decision from the SEC could open the floodgates for future altcoin ETF applications.
Interestingly, Ripple’s XRP has also seen a price increase of 5.48% in recent weeks. This uptick coincides with renewed speculation surrounding a potential XRP ETF. Last year, rumors of an XRP-spot ETF filing by investment giant BlackRock sent XRP prices soaring to $0.7503.
Hope for XRP ETF Rises with Ethereum Approval
In January, Steve McClurg, Chief Investment Officer at Valkyrie, fueled optimism for both a spot XRP ETF and an Ethereum ETF. He expressed his belief in a future filled with “a lot of filings coming out for Ethereum,” hinting at the possibility of similar developments for XRP.
While Ripple’s ongoing legal battle presents some hurdles, an Ethereum ETF approval could encourage asset managers and institutions to file XRP-spot ETF applications, especially as investor interest in XRP-based ETFs continues to grow.
Multiple Factors Pointing Towards Ethereum ETF Approval
Several factors bolster the case for an Ethereum ETF approval. Five asset managers have already filed applications, indicating strong demand from key players. Additionally, reports suggest that the SEC is leaning towards approval.
The market correction on March 20th further strengthens the case for an Ethereum ETF. This surge, sparked by news of increased exposure opportunities to the Ethereum network, highlights investor appetite for such a product.
Also Read: Will Ethereum ETFs Sink Bitcoin? Peter Schiff Thinks So, Experts Disagree
Ethereum (ETH) Remains Top Performer
At the time of writing, Ethereum is trading at $3,714, maintaining over 16% of its one-month price value. This makes it the best-performing altcoin within the top four categories, surpassing Bitcoin (BTC), Tether (USDT), and Binance Coin (BNB).
The Ethereum ETF saga continues to unfold, and its potential approval has already sent ripples through the crypto market. With altcoins experiencing significant gains and XRP speculation reignited, the coming weeks could be pivotal for the future of cryptocurrency ETFs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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