{"id":82766,"date":"2023-11-09T20:20:19","date_gmt":"2023-11-10T01:20:19","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/bitcoin-and-ether-rally-on-etf-optimism-sparking-hope-of-a-crypto-spring\/"},"modified":"2023-11-09T20:20:21","modified_gmt":"2023-11-10T01:20:21","slug":"bitcoin-and-ether-rally-on-etf-optimism-sparking-hope-of-a-crypto-spring","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=82766","title":{"rendered":"Bitcoin and ether rally on ETF optimism, sparking hope of a \u2018crypto spring\u2019"},"content":{"rendered":"
\n

Welcome back to Distributed Ledger. This is Frances Yue, reporter at MarketWatch.<\/p>\n

Bitcoin
\n BTCUSD,
\n +0.12%<\/bg-quote>
\n had another leg up this week, as Thursday marked the start of an eight-day window for the Securities and Exchange Commission to \u201ctheoretically issue approval orders\u201d for pending spot bitcoin ETF applications.<\/p>\n

\n

Ether
\n ETHUSD,
\n +2.21%<\/bg-quote>
\n also rose, as BlackRock appeared to have taken the first steps toward an ether ETF, with the website for Delaware\u2019s Division of Corporations showing that an iShares Ethereum Trust was registered Thursday.<\/p>\n

I caught up with a few industry participants to see what it means. <\/p>\n

Find me on Twitter at @FrancesYue_<\/a> to share any thoughts on crypto or this newsletter.<\/p>\n

The ETF hope<\/h2>\n

Crypto industry participants are expecting a spot bitcoin ETF to be approved soon, and an ether ETF to potentially follow. <\/p>\n

Once greenlighted, an ether ETF could further increase the institutional adoption of digital assets, noted Diogo M\u00f3nica, co-founder and president of Anchorage Digital.<\/p>\n

\u201cA spot Ethereum ETF would have a similar impact as a Bitcoin counterpart, providing a regulated and accessible wrapper for institutions and consumers to participate in the ETH ecosystem,\u201d M\u00f3nica said in emailed comments. <\/p>\n

\u201cBut Ethereum adds an extra layer of intrigue as a proof-of-stake asset, which means underlying ETH could also be staked for additional rewards,\u201d he added. \u201cIf approved, a spot Ethereum ETF would drive institutional demand for safe, secure, and regulated staking.\u201d <\/p>\n

Meanwhile, as bitcoin and ether prices rise, some smaller coinsalso saw their prices increased, pointing to a potential crypto spring, according to Leo Mizuhara, founder and chief executive at Hashnote.<\/p>\n

\u201cI think one of the usual patterns we see in these markets is that oftentimes a rally will begin with bitcoin and ether being more of the blue chip tokens, and then we\u2019ll see a lot of the alt coins rally after it,\u201d said Mizuhara.<\/p>\n

XRP
\n XRPUSD,
\n +0.71%<\/bg-quote>
\n rose 8% over the past seven days, and Solana
\n SOLUSD,
\n +0.95%<\/bg-quote>
\n added about 11% over the same period, according to CoinDesk data. <\/p>\n

Bitcoin\u2019s tight supply <\/h2>\n

Bitcoin supply is currently tight compared with historical levels, a bullish sign for the cryptocurrency, according to analysts at Glassnode. <\/p>\n

Many supply metrics regarding \u201ccoin inactivity\u201d were reaching multiyear, and even record highs, the analysts noted.<\/p>\n

For example, the percentage of circulating bitcoin supply that is held for longer than one year, is hovering at its record high, the analysts noted.\u00a0<\/p>\n

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Meanwhile, roughly 70% of bitcoin\u2019s supply has remained untouched in over three months, according to a note from analysts at Reflexivity Research.\u00a0<\/p>\n

Bitcoin has risen over 120% so far this year, but it still is down over 45% from its peak in November 2021, according to CoinDesk data.<\/p>\n

While higher bitcoin prices usually encourage sales of the coin, \u201cfor the time being it doesn\u2019t appear current price levels are enticing enough for the majority of Bitcoin\u2019s holder base,\u201d the analysts noted.\u00a0<\/p>\n

Crypto in a snap <\/h2>\n

Bitcoin gained 4.6% in the past seven days and was trading at around $36,495 on Thursday, according to CoinDesk data. Ether rose 7.5% during the same period at around $2,058.<\/p>\n

Must-read<\/h2>\n
    \n
  • \n Grayscale CEO: Bitcoin gains show a \u2018flight to quality\u2019 amid economic uncertainty (MarketWatch)<\/p>\n<\/li>\n
  • \n Wild Bitcoin, Ether Price Swings Spur $400M of Crypto Liquidations, the Most Since August (CoinDesk)<\/p>\n<\/li>\n<\/ul><\/div>\n<\/div>\n