During the past month, the U.S. Securities and Exchange Commission has startled Wall Street by changing rules to permit the launch of spot Ethereum (ETH) exchange-traded funds. As a result, the price of Bitcoin (BTC) has recovered and other prominent cryptocurrencies have gained ground.
After the SEC approved the first spot bitcoin ETFs to trade on significant U.S. exchanges in January, investors raced to bitcoin and other cryptocurrencies. Regulators, however, are still going after the cryptocurrency business, going after prominent executives of cryptocurrency exchanges, including those connected to the late Sam Bankman-Fried, the CEO of FTX.
Moreover, cryptocurrency investors are hoping that the Federal Reserve has addressed inflation enough to provide a smooth landing for the American economy and start lowering interest rates in the second half of 2024.
Bitcoin and Ethereum
With a combined market value of 70.8% of all cryptocurrencies, Bitcoin and Ethereum have distinguished themselves as the undisputed leaders of the market among thousands of others. Nevertheless, despite the fact that Ethereum and Bitcoin have both shown to be excellent long-term investments thus far, their objectives and designs differ greatly.
The main purpose of bitcoin for its supporters is to serve as a store of value and substitute for conventional fiat money, which is backed by the government.
The native coin of the Ethereum network, which powers smart contracts, decentralized apps, non-fungible tokens (NFTs), and other blockchain initiatives, is called ether.
Release: The purpose of this content is only to provide knowledge. Readers have to do their own research before making investment decisions.
