In the collapse experienced last week, there were major withdrawals in Ethereum and altcoins, especially in Bitcoin.
BTC fell to $25,000 and ETH to $1,550. However, it was seen that the losses in Bitcoin were more than the losses in Ethereum.
At this point, analysts disagreed on the reason for this difference, while one analyst attributed ETH's performance to optimism stemming from the SEC's potential to approve ETH futures ETFs, while another analyst attributed it to the lack of interest of investors in altcoins.
Speaking to Coindesk, Crypto Is Macro Now columnist Noelle Acheson said that the superior performance of ETH compared to BTC is an optimism about the imminent launch of the ETH futures ETF.
“It looks like the ETH market is finally talking about the possibility of an ETH futures ETF being approved in October.
While this may not be as good a product as a spot ETF, it is still a viable option for retail and institutional investors to diversify their crypto exposure. It is also likely to drive new entries to ETH.
As awareness of upcoming listings spreads, we're starting to see more interest and we may see that further investment could increase Ethereum's on-chain effectiveness.
This can have a positive effect on the price.”
Markus Thielen, head of research at Matrixport, said that his performance in ETH was mainly due to a lack of interest in altcoins.
“As the crypto market has become highly illiquid, with a few market makers moving away from crypto and exchanges removing zero-fee trading, larger players have focused on Bitcoin rather than trading illiquid altcoins.
This is also the reason why Bitcoin underperforms Ethereum when the market crashes.
So the hedging measures of market makers contributed to the price drop of Bitcoin while keeping the price of ETH from falling sharply.”
*Not investment advice.
