Bitcoin Soars While Ethereum Lags: Analysing 2024 Year-to-Date Returns

Ethereum’s performance this year has fallen behind Bitcoin’s, with the arrival of Bitcoin spot ETFs making all the difference.

What’s Going On: Bitcoin surged past its all-time high last month, driven by the high demand for new investment products tracking its spot price. Year-to-date, Bitcoin has increased by 47%.

However, Ethereum hasn’t followed the same pattern. Unlike Bitcoin, Ethereum hasn’t come close to its 2021 peak this year. Its year-to-date gains have been modest, sitting at 32%.

According to on-chain analytics firm Glassnode, Bitcoin’s Short-Term Holders’ Realised cap nearly matched the peak of the last bull run. In contrast, Ethereum’s STH-Realised Cap is less than half of the previous cycle’s level.

In simple terms, newer market participants have shown much more interest in Bitcoin than in Ethereum, where new capital inflows have been relatively weak.

Why It Matters: The introduction of new Bitcoin spot ETFs has made cryptocurrency investing more accessible, attracting more participants to the market, Glassnode explained.

However, Ethereum is still awaiting a decision on its spot ETFs, which is expected later this month. British multinational bank Standard Chartered, which initially forecasted approval by May, reversed its stance last month. Bloomberg ETF analyst Eric Balchunas also made a pessimistic statement regarding this matter.

Ethereum’s status has become a significant concern, with reports suggesting that the SEC is covertly assessing whether Ethereum should be classified as a security.

Potential Impact: If Ethereum is declared a security, it could negatively affect sentiment and investment in the coin, potentially leading to a price crash.

Price Movement: At the time of writing, Ethereum was trading at $3,015.99, marking a 1.56% drop in the last 24 hours.