This Week in Crypto – BTC Plummets as ETH Soars Following ETFs Launch

The Week of ETF Approvals

After months of waiting for the US SEC (Securities and Exchange Commission) to disclose its decision on spot Bitcoin ETF, the regulator delivered its verdict on January 10. All ETF applications were approved, and the new investment vehicle started to trade on Thursday.

But how has Bitcoin and other digital currency performed since the approval of the ETF earlier this week? Well, there have been mixed performances in the crypto market over the last few days. BTC, for example, rallied above $48,000 a few hours after the SEC’s announcement but has now plunged below $43,000. The current price means the coin has lost its seven-day gains and is down 2.48%.

Moreover, Bitcoin’s 30-day gains are just 0.3%. But those who bought the coin a year ago are not bothered by the current price fall, given that the digital asset is up 115% over the last 12 months.

Ethereum Price Analysis

Meanwhile, Ethereum has managed to retain its seven-day gains and even added 13%. But why is the token rallying despite Bitcoin depreciating? The speculations around a spot Ethereum ETF are the primary factor of ETH’s latest surge. The digital asset touched $2,698 on Friday for the first time in 18 months.

However, Gary Gensler’s Saturday interview on Fox Business appears to have cooled down the hype around the Ethereum ETF. The SEC Chair did not give any encouragement of an Ethereum ETF hitting the market during the interview. He continued to insist that Bitcoin is a commodity like Gold while Ethereum and other cryptocurrencies are securities. However, he did not explicitly say that the Commission would dismiss Ethereum ETF applications.

ETH is trading at $2,538 as of this writing. It is up 10.1% over the past 30 days and has surged 65% in the last 12 months.

Ethereum Ecosystem Witnesses Rallies

Ethereum layer-2 networks have also had a good week. Arbitrum’s native token ARB is up 16.7% to $2.13, and Optimism’s OP has surged 9.8% to $3.76. Notably, Ethereum Name Service’s token ENS has entered the list of the top 100 crypto assets by market capitalization after rallying 98% over the last seven days. It is now ranked 93rd and trades at $25.06.