The global digital asset industry is on its way to attaining $2 trillion market capitalisation after Bitcoin (BTC) and Ethereum jumped on to the bullish rally. The total market cap now stands at $1.81 trillion. However, an approval of spot Ethereum Exchange-Traded Fund (ETF) is expected to help the crypto market jump over the $2 trillion mark.
ETH ETF in focus
According to the data, Bitcoin successfully surpassed its 2022 highs, driven initially by speculation regarding a spot ETF in 2023. A mega approval and a robust start to ETF trading follow it. However, the market’s attention is now turning towards ETH as it anticipates a potential ETF approval on May 23rd.
Experts suggest that there is a strong possibility that Ethereum will see an uptrend towards its 2022 highs leading up to May. He added that the ETH/BTC pair potentially gained traction after being in a downturn since the merge in September 2022.
As per Tedtalksmacro, this turnaround could provide Ethereum with a reason to outperform the broader market. Even if the surge turns out to be short-lived it would help the biggest altcoin. He added that If an ETH ETF receives approval, it may spark speculation around other altcoins. This indicates a potential upswing for Solana (SOL).
Solana, a next big competitor
Solana has been on a surge since the last quarter of 2023. It has gained 93% in the last 90 days. It has already outperformed Ether as ETH price jumped by just 20% at the same time. SOL is trading at an average price of $105, at the press time. Its 24 hour trading volume jumped by 4% to stand at $1.5 billion.
ETH is trading at an average price of $2,484, at the press time. Its 24 hour trading volume stands around $6.9 billion.
A Coingecko study concluded that Europe holds a dominant position in the global ETH ETF landscape, commanding an 81.4% market share. The continent boasts 13 ETH-backed ETFs which cover spot products and futures funds. The total assets under management (AUM) amount to $4.6 billion. However, Canada is also a big market for ETH ETFs as it holds a 16.6% market share with $949 million in AUM.
As of February 2, the global AUM for Ethereum ETFs stood at $5.7 billion. It is distributed across 27 ETFs featuring both spot and futures funds. European Ethereum ETFs have been active since 2017, with Grayscale’s ETH trust (ETHE) as one of the pioneers..
