Spot The Difference In YTD Returns? Why Ethereum Is Trailing Bitcoin In 2024
Portfolio Pulse from Aniket Verma
Ethereum (ETH) has underperformed compared to Bitcoin (BTC) in the year-to-date returns of 2024, with Bitcoin ETFs' listing being a significant factor. Bitcoin's price surged by 47% YTD, reaching a new all-time high, driven by demand for spot price tracking investment vehicles. In contrast, Ethereum's YTD gains stood at 32%, failing to approach its 2021 peak. The divergence in performance is attributed to greater interest and capital inflow into Bitcoin, especially from short-term holders, while Ethereum awaits decisions on its spot ETFs. Concerns over Ethereum being potentially classified as a security by the SEC could further impact its investment sentiment and price.
May 08, 2024 | 6:37 am
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NEGATIVE IMPACT
Ethereum's YTD gains of 32% lag behind Bitcoin's, as it awaits decisions on its spot ETFs. Potential classification by the SEC as a security could negatively impact its price and investment sentiment.
Ethereum's underperformance compared to Bitcoin can be attributed to the lack of spot ETFs and the looming threat of being classified as a security by the SEC. This regulatory uncertainty is likely to dampen investor sentiment and could lead to a short-term price decline.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Bitcoin has seen a significant YTD increase of 47%, reaching new all-time highs, largely due to the introduction of spot Bitcoin ETFs and increased demand from short-term holders.
The listing of Bitcoin spot ETFs has made it easier for investors to access Bitcoin, leading to increased demand and a significant price surge. This positive momentum is likely to continue in the short term, especially as it contrasts with Ethereum's regulatory uncertainties.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90