Big financial players, Fidelity and BlackRock, are in a quick race to start investment funds focused on Ethereum. Fidelity just applied for approval, and BlackRock revealed plans for its own fund a day earlier. These moves show that major money managers believe in the future of cryptocurrencies.
Fidelity manages a colossal $4.5 trillion, while BlackRock is even bigger with over $8 trillion in assets. Both want to tap into the growing interest in Ethereum, a type of cryptocurrency.
Was Ethereum’s price affected?
The price of Ethereum didn’t jump much after Fidelity’s news. It’s currently hovering around $1,953, down 4% this week. Despite this, Ether has gone up by a solid 28% from its lowest point in October.
Experts think Ether’s recent slowdown is because people are cashing in profits. Even though it’s not rising as fast as Bitcoin, which went up by 45%, some believe Ether could still go higher.
The broader market’s positive mood, driven by hopes for new Bitcoin investment funds and better economic conditions, is helping Ether. The recent buzz about big companies planning Ethereum funds is also a boost.
However, Ether’s success might depend on breaking a key level around $2,150. If it does, experts say it could shoot up to $3,600 quickly.
Investors are keeping an eye on how things unfold, especially with the potential for the US government’s interest rates affecting Ether’s appeal. If those rates drop below what people earn from holding Ether, it could attract more investors.