The crypto market’s attention is shifting away from the Bitcoin exchange-traded fund (ETF) approval, with most digital assets failing to capitalize on the monumental event in the short term. Based on the price movement after the approval, the product can be deemed to have turned out to be a “buy the rumor, sell the news” event.
Interestingly, the conversation around crypto ETFs has turned to a possible similar product for Ethereum (ETH), the second-ranked cryptocurrency by market capitalization.
These discussions are highlighted by activities on Google Trends, where interest in the keyword ‘Ethereum ETF’ has spiked to an all-time high in the United States over the past 12 months.
In particular, data acquired by Finbold on January 15 indicates that by the week ending January 13, the interest in the keyword hit a peak popularity score of 100, the highest point over the last month. Notably, between January 6 and January 14, the interest spiked by 455%.
A breakdown of regional interest indicates that Oregon and Alabama are leading, reaching a popularity score of 100. Nevada follows closely in third place with a score of 94, trailed by New Jersey at 85, while Washington secures the fifth spot with a score of 81.
Drivers of ETH ETF interest
Interest in the Ethereum ETF surged notably after BlackRock (NYSE: BLK) CEO Larry Fink expressed that he “sees value” in the product. It’s worth highlighting that BlackRock, the world’s largest investment management firm, is a key player in the Bitcoin ETF arena.
It is also among the applicants awaiting feedback from the Securities and Exchange Commission (SEC) on the spot Ethereum ETF application. The SEC is set to decide on the Ethereum ETF in May of this year.
However, there is speculation that the product might encounter obstacles due to its classification by regulators as a security. At the same time, SEC chair Gary Gensler has pointed out that part of the reason for approving a Bitcoin ETF is its classification as a commodity.
Ethereum price analysis
Amidst the speculation, Ethereum is experiencing increasing buying pressure, with the token rallying while Bitcoin faces the threat of losing the $40,000 support zone.
Ethereum has recorded weekly gains of over 13% as of press time, with the decentralized finance (DeFi) token trading at $2,537.
It’s essential to note that spot Bitcoin’s approval does not guarantee Ethereum’s similar fate, nor does it assure a price rally for ETH.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
