ETH/BTC ratio soars after BlackRock’s Ethereum ETF filing

  • The ETH/BTC ratio has seen some growth in the last week.
  • ETH’s trading activity has climbed to multi-month highs following the BlackRock Ethereum ETF application.

The Ethereum [ETH] to Bitcoin [BTC] ratio climbed to new highs last week after asset management giant BlackRock filed for an exchange-traded fund (ETF) for Ethereum.

The ETH to BTC Ratio, which measures the relative performance of ETH against BTC, spent the last year in decline. This underlined the steep fall in the values of ETH and the general altcoin market. 

Crypto research firm Kaiko, in a new report, found that the ratio:

“Has trended downwards ever since The Merge, even though ETH underwent another successful upgrade in April.”

However, sentiments improved greatly after the news of BlackRock’s filing became public, causing the ratio to witness a reversal. At 0.05607 as of the 13th of November, the ETH to BTC Ratio increased by 10% since the application was made on the 9th of November.

Source: Kaiko

All thanks to BlackRock

Since the filing, ETH has seen a significant surge in trading volume across centralized exchanges. Kaiko found that daily Spot Trade Volume hit $7 billion after the application was made.

This represented the highest level since the collapse of cryptocurrency exchange FTX in November 2022.

Source: Kaiko

Moreover, the increased trading activity around the leading altcoin has caused it to exchange hands above the $2000 price level for the first time since April. At press time, ETH traded for $2060 per coin, according to data from CoinMarketCap.

In addition to a surge in ETH trading volume, the altcoin market share has rallied since the BlackRock filing. 

Per Kaiko’s report:

“The market share of altcoin + ETH volume relative to BTC has risen to 60%, its highest level in more than a year.”

As the alt’s price grows, Futures market participants have increased their demand for leverage in expectation of a continued price rally. At $7.17 billion at press time, ETH’s Open Interest has recovered to levels seen before the market-wide liquidation event in August.

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Likewise, as per Kaiko, the coin’s Funding Rates:

“Have also surged to their highest levels in more than a year, suggesting sentiment has turned.”

According to data obtained from Coinglass, since the 1st of October, crypto exchanges have seen only positive funding rates for ETH. This shows that participants in the coin’s futures market have continuously placed bets in favor of a sustained price rally. 

Source: Coinglass

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