This period was filled with speculation about whether the various spot ETFs would go through. Still, starting mid-October, the assets rose as confidence that approval would be achieved went up.
“Bitcoin’s market cap has increased by +68.8% since BlackRock first filed for their ETF, and the aggregate Altcoin Market Cap followed suit, rising by +68.9%,” reads the report. “However, Ethereum has seen more sluggish relative momentum, underperforming the wider altcoin space by -17%.”
Next, Glassnode has talked about the “market cap dominance” of these asset classes, which measures the percentage share they occupy in the total valuation of the cryptocurrency sector.
Since the FTX collapse in November 2022, Bitcoin’s market cap dominance has notably risen. However, BTC hasn’t taken a share of Ethereum as the second-largest coin’s dominance has moved mostly sideways in this period. Instead, the altcoins and stablecoins are the ones who have lost dominance to Bitcoin.
The BTC spot ETFs finally gained approval earlier this month, but the event turned out to be a sell-the-news one for the asset. In this post-ETF era, though, a new narrative has appeared in the sector in the form of the ETH spot ETFs.
“Shortly after the approval of the Bitcoin ETF, several issuers have filed or suggested a willingness to advocate for a spot ETF for Ethereum,” notes Glassnode. “Although obtaining approval for an ETH-based ETF might be more challenging due to the SEC possibly considering Ether as more of an investment contract, the markets appeared to express optimism.”
As the chart below shows, Ethereum’s dominance against Bitcoin has gone up.
Featured image from Bastian Riccardi on Unsplash.com, charts from TradingView.com, Glassnode.com
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