Ethereum (ETH) cannot maintain its value against Bitcoin (BTC) despite the recent positive developments on the ETF side.
According to TradingView data, ETH/BTC parity has fallen in the past hours. Lowest since July 2022 It decreased to the level of 0.05675. The ratio between the two, Ethereum in September last year merge almost since getting the update decreased by 30%.
Six exchange-traded funds (ETFs) based on futures contracts for Ethereum were opened for trading in the United States last week. However, there was no great demand for these.
Two of these ETFs stand out (VanEck EFUT and ProShares EETH), according to data provider Kaiko. $5 million recorded transaction volume.
In contrast, ProShares’ Bitcoin futures ETF, in October 2021, when there is a bull market processed and $1 billion transaction volume on its first day he had seen.
According to Kaiko’s research team, Ethereum’s failure to perform well against Bitcoin is caused by bear market it could be:
This underperformance of ETH may be due to the ongoing bear market, as investors turn to BTC, the oldest and largest crypto asset throughout history, during these periods. ETH spot trading volume has also been largely flat over the past two months, exceeding $2 billion only a handful of times.
Investors are turning to Bitcoin, Bitcoin from the change in market dominance can also be seen. This ratio, which shows the share of BTC in the overall crypto market, has increased throughout the year. from 41% to 51% rose.
Greg Magadini from the Amberdata team said: BTC to gold, ETH to tech stocks and that the Fed’s interest rate policy It may be affecting Ethereum more negatively he thinks.
Magadini also explains Bitcoin in its current form in terms of regulation He also says that it has an advantage over Ethereum. According to Magadini, ETH is like BTC. “commodity” Even though it is known as Legal questions about Ethereum-based DeFi projects, uncertainty for the future of ETH creates.