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

Jour­nal­ist

Post­ed: Novem­ber 15, 2023

• 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