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The largest altcoin, Ethereum (ETH), has experienced a price surge of over 10% following asset management company BlackRock’s application for a spot Ethereum ETF. Currently valued at $254 billion, ETH is trading at $2,126 with a 10.63% increase.
BlackRock’s Spot Ethereum ETF Application Triggered the Rally
The recent price rally in Ethereum is parallel to the strong accumulation of Ethereum in wallet addresses. On-chain data provider Santiment stated that there has been a significant increase in Ethereum’s market value and a 38% increase in the number of wallet addresses in the past four weeks.
This growth indicates significant expansion in the network. Particularly, the number of small-scale wallet addresses holding less than 0.1 ETH has surpassed 100,000 for the first time. Additionally, there has been a notable increase in the number of wallet addresses holding 0.1-10 ETH and over 10,000 ETH.
The main trigger for Ethereum’s price rally was the application for a spot Ethereum ETF by BlackRock, the world’s largest asset management company. The registration of iShares Ethereum Trust was seen on the Delaware Division of Corporations website on November 9. This development bears resemblance to BlackRock’s application for a spot Bitcoin ETF shortly after filing a similar notice for iShares Bitcoin Trust in June.
It is worth noting that BlackRock is not the first company to apply for a spot Ethereum ETF. Previously, seven players including VanEck, ArkInvest, 21Shares, Invesco, Hasdex, and Grayscale have made applications to the U.S. Securities and Exchange Commission (SEC).
During the midst of the price rally, ETH broke through a significant supply wall at $2,030. According to experienced crypto analyst Ali Martinez, the price of ETH could rapidly rise to $2,500.
BlackRock Could Apply for More Altcoin ETFs
Lark Davis, another crypto analyst amidst these developments, suggested that BlackRock and other asset management companies will continue to apply for ETFs for different altcoins. In his assessment, Davis stated:
I believe that BlackRock will apply for ETFs for altcoins such as Bitcoin, Ethereum, and eventually Chainlink, Solana. This cycle is the time for institutional money to flow into cryptocurrencies on a large scale. It could also be the final cycle for life-changing generational wealth.
Alongside Ethereum, oracle service provider Chainlink (LINK) has shown a 100% increase in the past three weeks. Additionally, Ethereum Layer-2 network Polygon (MATIC) is aiming for the $1 level with a strong rally.
