Ethereum ETF Frenzy Surges to 12-Month High in US Google Searches
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Written by
Rahul Nambiampurath - Updated 2024-02-13 20:17:37
The focus of the crypto market is shifting away from the approval of the Bitcoin exchange-traded fund (ETF), as most digital assets cannot capitalize on this significant event in the short term. Following the approval, the market dynamics suggest that the situation can be likened to a “buy the rumour, sell the news” phenomenon.
Interestingly, discussions surrounding crypto ETFs have now turned towards a potential equivalent product for Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
These discussions are evident in the surge of interest in the keyword ‘Ethereum ETF' on Google Trends, which has reached an all-time high in the United States over the past 12 months.
According to data obtained on January 15, the interest in the keyword peaked with a score of 100 by the week ending January 13, marking the highest point in the last month. Notably, the interest sharply increased by 455% between January 6 and January 14.
Analyzing regional interest, Oregon and Alabama are at the forefront with a popularity score of 100. Nevada closely follows in third place with a score of 94, trailed by New Jersey at 85, and Washington securing the fifth spot with a score of 81.
Factors Driving Interest in ETH ETF
The surge in interest in the Ethereum ETF gained momentum after BlackRock (NYSE: BLK) CEO Larry Fink expressed his belief in the product. It's noteworthy that BlackRock, the world's largest investment management firm, plays a crucial role in the Bitcoin ETF arena and is among the applicants awaiting feedback from the Securities and Exchange Commission (SEC) on the Ethereum ETF application. The SEC is expected to decide on the Ethereum ETF in May of this year.
However, there is speculation that regulatory classification as a security might pose challenges for the product. Simultaneously, SEC Chair Gary Gensler has emphasized that one of the reasons for approving a Bitcoin ETF is its classification as a commodity.
Ethereum price analysis
Amidst these speculations, Ethereum is witnessing an increase in buying pressure, with the token rallying while Bitcoin faces the risk of breaking below the $40,000 support zone.
As of press time, Ethereum has recorded weekly gains exceeding 13%, with the decentralized finance (DeFi) token trading at $2,537.
It's crucial to emphasize that the approval of spot Bitcoin does not necessarily guarantee a parallel outcome for Ethereum, nor does it ensure a price rally for ETH.
