Ethereum (ETH), the second-largest digital asset, has seen a remarkable surge in its price, following BlackRock’s recent application for a spot Ethereum Exchange-Traded Fund (ETF). This application marks a pivotal moment, not only for Ethereum but for the broader altcoin market, heralding a new era of institutional investment in cryptocurrencies. The information was confirmed by Eric Balchunas, ETF analyst for Bloomberg, on the X platform.
BlackRock has made first step towards filing for a spot Ether ETF. I just confirmed on the website myself. Nice catch by @SummersThings https://t.co/mLKIhKdiI6
— Eric Balchunas (@EricBalchunas) November 9, 2023
BlackRock, the world’s largest asset management company, filed for a spot Ethereum ETF, a move that sparked an immediate and positive reaction in the market. Ethereum’s valuation soared to $254 billion, with its price reaching $2,112.74, a 9.5% increase. This rally is not just a reflection of market sentiment but also aligns with the strong accumulation of Ethereum in various wallet addresses, as reported by on-chain data provider Santiment.
The growth in Ethereum’s market is underscored by a 38% increase in the number of wallet addresses in the past four weeks, signifying a substantial expansion in the Ethereum network. A notable aspect of this growth is the increase in small-scale wallet addresses holding less than 0.1 ETH, which surpassed 100,000 for the first time, alongside a rise in addresses holding between 0.1-10 ETH and over 10,000 ETH.
BlackRock’s initiative to apply for Ethereum ETFs is part of a broader trend of institutional investment flowing into cryptocurrencies. This trend is not isolated to Ethereum, as evidenced by similar ETF applications from other major players like VanEck and ArkInvest.
Moreover, the potential of BlackRock extending its ETF applications to other altcoins, such as Bitcoin, Chainlink, and Solana, as suggested by crypto analyst Lark Davis, indicates a growing interest in a diverse range of digital assets. This shift could mark a transformative period for cryptocurrencies, opening the door for life-changing generational wealth through crypto investments.
Amidst the bullish sentiment, Ethereum broke through a significant supply wall at $2,030. Crypto analyst Ali suggested that the price of ETH could rapidly ascend to $2,500, marking a new milestone in its valuation. This technical breakthrough is a testament to Ethereum’s growing strength and its potential trajectory in the world of digital finance.
