Bitcoin ETF Approval Boosts Ethereum and Other Crypto Tokens

crypto tokens with the image of a bull drawn on them

The SEC’s approval of the first-ever spot Bitcoin ETFs has sent the crypto market into a frenzy, with Ethereum and other crypto stocks surging to new highs. Bitcoin rose to $47,560 before a pull-back above $46,700, a modest 2% gain over the past 24 hours. However, the cryptocurrency is currently trading at a high seen since March 2022. Ethereum rose by 8.1% in 24 hours, close to $2,640, reaching a nineteen-month high. Other crypto stocks such as LDO, RPL, ARB, OP, MKR, AAVE and ETC also gained momentum.

An Approval and a Price Spike

The crypto market witnessed a remarkable rally on Wednesday, Jan. 10, 2024, as the SEC announced its approval of the first-ever spot Bitcoin ETFs in the United States. The approval came after months of anticipation and scrutiny from regulators and investors alike.

Ethereum was one of the biggest winners among the crypto stocks on Wednesday. The second-largest cryptocurrency by market cap jumped by 8.1% in 24 hours to close at $2,640, reaching its highest level since May 2022. Ethereum is widely regarded as the leading platform for smart contracts and decentralized applications (DApps), which are powered by its native currency Ether (ETH).

Ethereum’s Rally was Driven by Several Factors:

  • The anticipation of more spot Ether ETFs from major Wall Street firms such as BlackRock, which previously filed for an iShares Ethereum Trust with the SEC.
  • The improvement of Ethereum’s blockchain architecture as part of its transition to proof-of-stake (PoS) consensus mechanism, which is expected to enhance its scalability, security and energy efficiency.
  • The rising demand for gaming and tokenization on Ethereum’s network, which could boost its adoption among mainstream users and investors.
  • The positive sentiment towards Ethereum’s ecosystem utility compared to Bitcoin’s store-of-value proposition, which could attract more institutional capital inflow into ETH.

Other Crypto Tokens that Gained Momentum on Wednesday

  • LDO: A decentralized lending platform that allows users to borrow stablecoins against their collateralized assets on various blockchains. LDO surged by 3% in 24 hours to close at $3.84. On the one-year chart,the token has gained a massive 95%.
  • ARB: A decentralized autonomous organization (DAO) that aims to create a global community of artists who can collaborate and monetize their work using blockchain technology. The tokengained 26% in 24 hours, bringing its market price to $2.26.
  • OP: A decentralized social media platform that allows users to create and share content without censorship or ads using blockchain technology. The Optimism token gained 9.74% bringing its market value to $3.88.
  • MKR: A governance token that gives holders voting rights over MKR holders on various decisions affecting MakerDAO’s protocol parameters such as interest rates and collateral requirements. It gained 1.33%, currently changing hands at $1,755.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.