Business Standard

Crypto wrap: Ethereum outperforms Bitcoin as investors tread with caution

Apart from Ethereum, almost all the major crypto coins traded range bound in the last one week

Bitcoin, cryptocurrency

Photo: Bloomberg

Raghav Aggarwal New Delhi

Listen to This Article

In the last seven days, Ethereum outperformed Bitcoin, rising 5 per cent to $1,673.84 as compared to a 1.66 per cent jump in the largest cryptocurrency by market capitalisation. According to experts, this was due to the increasing likelihood of Ethereum futures gaining approval from the United States Securities and Exchange Commission.

"This was a trend reversal, as the possibilities for an ETH Futures ETF getting approval became higher, leading to a surge in prices," said Parth Chaturvedi, investments lead at CoinSwitch Ventures.

Additionally, according to Edul Patel, co-founder and chief executive officer of Mudrex, "This positive price movement could be attributed to Valkyrie Funds LLC, an investment manager, receiving regulatory approval from the SEC to introduce Ethereum futures to its existing Bitcoin futures exchange-traded fund."
 

Apart from Ethereum, almost all major crypto coins traded within a narrow range over the past week.

"It's worth noting that the SEC has postponed its decision on Bitcoin ETFs from Blackrock, Bitwise, Invesco, and Valkyrie. These delays occurred two weeks ahead of the expected deadline of 16–19 October," said the CoinDCX research team.

The market was also muted due to the rise in treasury bond rates and household mortgage rates. There was uncertainty around inflation, and the US Federal Reserve indicated that it may continue to raise rates for longer than anticipated.

"There's also a looming uncertainty about the Federal Reserve's interest rate hike, which is creating a cautious approach in the market," said Rajagopal Menon, vice president at WazirX.

He added that the market also looks bearish due to the possibility of a US government shutdown. Notably, if funding is not approved, the US government will shut down on 1 October, leaving millions without their salaries.

If that occurs, regulatory developments in the Web3 ecosystem may be further delayed, Menon said.

"The main event to watch out for is the weekly and monthly options expiry this Friday, with $4.8 billion worth of Bitcoin and Ethereum options expiring on key derivatives exchange Deribit. Option traders remain uncertain about the directional momentum in prices," Chaturvedi added.

Meanwhile, Coinbase received regulatory approval in Bermuda to offer crypto derivatives (Perps) to non-US retail clients globally.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 29 2023 | 5:10 PM IST

Explore News