Approving multiple Spot Bitcoin ETFs has greatly shifted the narrative of ETFs in the cryptocurrency community, particularly among traders and investors alike. With a more positive outlook on ETF approvals, market players are optimistic that an Ethereum-based ETF could make its way into the market.
More recently, emerging data has validated investors’ positive sentiments; as such, expectations for the approval of an Ethereum ETF have skyrocketed. Notably, other altcoins have also benefited from the ongoing development.
According to data shared by Santiment, a notable Cryptocurrency on-chain analytical platform, the positive reception surrounding a potential Ethereum ETF approval has triggered a spike in the price value of other alternative tokens.
ETH, UNI, PEPE, BONK, and LDO have all collectively recorded more than a 20% increase in price value over the past 48 hours. Additionally, the market cap has also increased significantly. BONK, UNI, and LDO have seen their market caps soar by 44%, +43%, and +38%, respectively.
The price rally almost clouds Bitcoin’s return above the $72,400 price market, a feat obtained for the first time in six weeks.
As Santiment shared in a Twitter post,
“The hype surrounding Ethereum’s first spot ETF has been a catalyst for one of crypto’s top 5 days of 2024. ETH, UNI, PEPE, BONK, & LDO are all over +20% in 24 hours. Bitcoin’s jump to $71.4K for the first time in 6 weeks is almost an afterthought.”
In the long-term, possible approval of multiple altcoin-based ETFs largely hinges on approving a spot-based Ethereum ETF. As such, a green light from the SEC towards current Ethereum ETF applications could catalyze the approval of future altcoin ETFs.
Interestingly, demand for Ripple’s XRP has increased over the past weeks, with prices soaring by 5.48%. Recall that XRP tapped $0.7503 last year following rumors that investment firm BlackRock had filed for an XRP-spot ETF.
In January, Steve McClurg, Chief Investment Officer at Valkyrie, fueled the flames of hope for a spot XRP ETF and hinted at a similar possibility for Ethereum. In a Bloomberg interview, McClurg expressed optimism about the future, saying, “I think we’re going to see a lot of filings come out for Ethereum. I even think we might see something for Ripple given the recent progress.”
While the ongoing legal issues could hinder a handful of developments within the Ripple ecosystem, approving an Ethereum-spot ETF could encourage asset managers and institutions to submit XRP-spot-based applications as billions continue to flow into the XRP exchange-traded funds.
Multiple factors validate the potential approval of an Ethereum ETF
So far, five asset managers have filed for a Spot Ethereum ETF, hinting at a growing demand from key players. Additionally, a Securities and Exchange Commission staff reportedly told exchanges that the regulatory body is leaning towards approval.
It bears mentioning that although the market strayed away from ETH and other altcoins for the past two months, following the plunge, it saw a major correction on March 20th.
“March 20th, in particular, ended up being one of the best price-performance days of 2024, sparked by the news of investors getting likely opportunities of increased exposure to the ETH network and crypto’s first altcoin.” Santiment asserted.
At report time, ETH is trading at a press price of $3,762. The asset has also sustained over 16% of its one-month price value; making it the best-performing altcoin within the top 4 categories, outperforming BTC, USDT, and BNB.