Jannat Ara

Ethereum Classic Surges 37% Amid Speculation of Ethereum ETF Approval

Ethereum Classic (ETC) has seen an impressive 37% surge in the past week, with market observers attributing the rally to heightened anticipation around the potential approval of an Ethereum (ETH) exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). While the SEC recently approved spot Bitcoin ETFs on January 10, SEC Chair Gary Gensler has advised against interpreting this decision as an indication of a similar approval for ETH.

As of the latest data from CoinGecko, Ethereum Classic is trading at $26.65, boasting a market cap of $3.8 billion. The surge in ETC’s value has been linked to increased trading volumes and the overall excitement surrounding the potential approval of Ethereum ETFs.

The surge in Ethereum Classic’s value is somewhat enigmatic, with some skeptics suggesting that the rapid climb is in anticipation of an upcoming hard fork scheduled for later in the month. This hard fork is expected to align the network’s Ethereum Virtual Machine (EVM) more closely with Ethereum, potentially attracting collaborative projects to the ETC chain.

Adding context to this scenario, Ethereum Classic experienced a surge in hashrate after Ethereum transitioned to proof-of-stake in late 2022. Former Ethereum miners redirected their GPU mining rigs to Ethereum Classic, seeking an alternative revenue stream and contributing to the network’s increased hashrate.

Despite Ethereum Classic’s post-Merge hashrate stability, the network currently processes around 30,000 transactions per day, which is roughly on par with Bitcoin Cash. However, Ethereum Classic’s hashrate remains less than 15% of Ethereum’s pre-Merge levels.

Market reactions appear to have anticipated the SEC’s unofficial signals, resulting in a premature sell-off of the news while simultaneously speculating on the potential approval of Ethereum ETFs. Larry Fink, CEO of BlackRock, has expressed support for an Ethereum-based ETF following the successful launch of the Bitcoin ETF.

The recent approval of spot Bitcoin ETFs is seen as a potential precursor to the approval of spot Ether ETFs in the future. This development could position Bitcoin for inclusion in mainstream investment options like 401(k)s, IRAs, and pension plans, driving broader acceptance. Major asset managers, including BlackRock, Fidelity, and Grayscale, have expressed interest in cryptocurrency ETFs.

Looking ahead, the SEC is expected to make decisions on spot Ether ETF applications starting in May, with BlackRock, Invesco, Ark, VanEck, and Grayscale among the firms seeking approval.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD