Bitcoin ETF Fever Drives Ethereum to 32-Month Low Versus BTC

Ethereum's ether [ETH] has slumped to its lowest price versus bitcoin [BTC] since April 2021 as crypto investors obsess over the expected approval of bitcoin ETFs in the U.S.

ETH has lost 43% of its value against BTC since Sept. 7, falling from a price of 0.08566 BTC to 0.0482 BTC. In U.S. dollar terms, ether has risen by 41% in the same period, but that is dwarfed by bitcoin's 81% gain.

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In another sign of enthusiasm about bitcoin ETFs and how they might transform the crypto market, bitcoin dominance, which measures bitcoin's share of the entire cryptocurrency industry's market capitalization, has risen from 39% to 54% in the past 14 months.

Bitcoin's increase against altcoins like ether can be attributed to the emergence of two narratives: hopes that a spot bitcoin ETF will be approved in the U.S. and the upcoming "halving," or reduction in the reward given to miners who create new BTC.

While ether is being earmarked for future exchange-traded products, bitcoin is expected to experience "tens of billions of dollars worth" of fresh inflows if the U.S. Securities and Exchange Commission approves a spot ETF this week.

Bitcoin will also undergo a block reward halving in April, an event that has previously coincided with a series of bull markets as newly mined supply is reduced.

Ethereum, meanwhile, has fallen from the spotlight following its hyped transition to a proof-of-stake blockchain in 2022. Total value locked across all Ethereum protocols is less than it was in April last year, despite the price being 10% higher.